Disappointment over how the Commonwealth Bank of Australia Ltd
(ASX:CBA) treated businesses during the global financial crisis has lead to the bank being left out of new corporate loan arrangements.
The Australian Financial Review reports that CBA is at the bottom of a list of the four big banks for participation in syndicated loans, as companies like Newcrest Mining Ltd and Constellation Brands Ltd have, over the past year, rewritten their loans and excluded the bank from involvement.
The newspaper writes that anonymous executives have expressed major grievances with the way CBA treated businesses during the financial crisis and that it behaved the worst of the four major banks.
Complaints include banks pulling their relationships with bankers out of meetings and swapping them with risk officers with no understanding of the client’s business.
Other complaints included dates for rolling over loans being turned into ultimatums forcing companies to raise extra capital.
CBA’s net profit in the year to June 30 2009 was around $4.7 billion.
