The Banksia Financial Group collapse
Oct 26, 2012
Some folks in Australia are feeling the pain of losing their investment. They all thought they were safe, because the auditors had just given the company "a clean bill of health" just a few weeks ago. Of course, that was weeks ago. Plenty of time since then to go bankrupt.
Perhaps the auditors should be prosecuted for bribery or fraud.
About 15,000 investment accounts have been frozen as receivers work through the company's books.
Receiver McGrathNicol said yesterday it was still trying to work out what had led to the downfall.
But it expect to provide investors with a "meaningful return" on the $650 million of funds now in question.
The collapse came less than four weeks after Banksia's auditors gave the accounts of Banksia Securities, the key subsidiary behind the group's downfall, a clean bill of health.
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