Mediatation over Storm claims

Commonwealth Bank agreed to mediate disputes with customers that borrowed from the bank and invested the funds through Storm Financial, leading to the loss of most of the clients' investments. About 2500 customers are eligible for mediation.

Around 75 CBA customers represented by lawyers Slater & Gordon will have their cases dealt with through the initial pilot resolution process, the Sydney Morning Herald reported. CBA will pay for legal and financial advice for clients.

Ian Callinan, a former High Court judge, will serve as an independent arbitrator.

The Bank of Queensland, with about 300 customers in similar circumstances, is resisting settlement talks with clients and their lawyers.