Dear Mr. Tan
508 million was invested in minibonds. but Mr. Goh revealed offers made to victims from the distributors totalled 100 million, or 20%. Is it a joke of the century or what when Mr. Goh bragged about "2/3 receiving compensation?
Friday, June 26, 2009
Only 20% received offer
ST: Lehman saga: Two thirds get payment offer
June 27, 2009
One in four who had mis-selling complaints fully compensated
By Francis Chan
MORE than two-thirds of the investors in Singapore who complained of mis-selling after losing money from the collapse of US investment bank Lehman Brothers, have been offered compensation.
Out of 5,350 cases dealt with by financial institutions that sold the Lehman-linked structured products, a quarter saw investors receiving full compensation, said Senior Minister Goh Chok Tong yesterday.
The latest updates came from the Monetary Authority of Singapore (MAS).
Mr Goh, who is also MAS chairman, was speaking at The Association of Banks of Singapore's (ABS) annual dinner.
He said the financial institutions that distributed the failed structured products have generally reviewed investor complaints in accordance with MAS recommendations that they should not take an overly legalistic approach.
Three banks and one finance company told MAS that as at last month, settlements worth $105 million - on a no-admission-of-liability basis - had been offered to more than 3,600 investors of Lehman-linked notes.
Of the 5,350 cases dealt with and decided on by the financial institutions, 67 per cent had seen settlements offered, while investors in 25 per cent of the cases decided were fully compensated.
Ten financial institutions sold over $660 million worth of Lehman-linked investments to more than 10,000 investors, who bought Lehman Minibonds, DBS High Notes 5 and Merrill Lynch Jubilee Series 3 LinkEarner Notes.
Mr Goh said MAS had recently consulted the public on proposed regulatory enhancements to cover the sale and marketing of structured products to retail investors.
'Broadly, the findings from MAS' policy review and investigations show that financial institutions will need fundamental changes in both business models and mindsets to win back the trust and confidence of consumers. This is true not only in Singapore, but across the globe.'
Mr Goh said that MAS had completed its probe into the sale of the structured notes and would release its findings soon.
Investors caught up in the fiasco have been looking forward to the the findings for months, most with mixed feelings.
'If the investigation process is conducted properly and without prejudice, I am hopeful that the findings will be in our favour,' said one investor who did not want to be named.
'My case is still in adjucation, so I do hope to hear favourable findings,' said another Minibonds investor whose complaint is being dealt with by the Financial Industry Disputes Resolution Centre.
'But all they need to do is tell us the truth, and I am sure most, if not all, cases should receive full compensation.'
MAS recently set out in its Fair Dealing Guidelines the roles and responsibilities of boards and senior management in driving some fundamental changes needed for good customer outcomes.
Mr Goh said MAS will fine-tune its approach to supervision of the market conduct of financial institutions, including greater probing of boards and senior management on the steps they are taking to embed fair dealing outcomes in all their processes, from product approval to staff incentive structures.
franchan@sph.com.sg
One in four who had mis-selling complaints fully compensated
By Francis Chan
MORE than two-thirds of the investors in Singapore who complained of mis-selling after losing money from the collapse of US investment bank Lehman Brothers, have been offered compensation.
Out of 5,350 cases dealt with by financial institutions that sold the Lehman-linked structured products, a quarter saw investors receiving full compensation, said Senior Minister Goh Chok Tong yesterday.
The latest updates came from the Monetary Authority of Singapore (MAS).
Mr Goh, who is also MAS chairman, was speaking at The Association of Banks of Singapore's (ABS) annual dinner.
He said the financial institutions that distributed the failed structured products have generally reviewed investor complaints in accordance with MAS recommendations that they should not take an overly legalistic approach.
Three banks and one finance company told MAS that as at last month, settlements worth $105 million - on a no-admission-of-liability basis - had been offered to more than 3,600 investors of Lehman-linked notes.
Of the 5,350 cases dealt with and decided on by the financial institutions, 67 per cent had seen settlements offered, while investors in 25 per cent of the cases decided were fully compensated.
Ten financial institutions sold over $660 million worth of Lehman-linked investments to more than 10,000 investors, who bought Lehman Minibonds, DBS High Notes 5 and Merrill Lynch Jubilee Series 3 LinkEarner Notes.
Mr Goh said MAS had recently consulted the public on proposed regulatory enhancements to cover the sale and marketing of structured products to retail investors.
'Broadly, the findings from MAS' policy review and investigations show that financial institutions will need fundamental changes in both business models and mindsets to win back the trust and confidence of consumers. This is true not only in Singapore, but across the globe.'
Mr Goh said that MAS had completed its probe into the sale of the structured notes and would release its findings soon.
Investors caught up in the fiasco have been looking forward to the the findings for months, most with mixed feelings.
'If the investigation process is conducted properly and without prejudice, I am hopeful that the findings will be in our favour,' said one investor who did not want to be named.
'My case is still in adjucation, so I do hope to hear favourable findings,' said another Minibonds investor whose complaint is being dealt with by the Financial Industry Disputes Resolution Centre.
'But all they need to do is tell us the truth, and I am sure most, if not all, cases should receive full compensation.'
MAS recently set out in its Fair Dealing Guidelines the roles and responsibilities of boards and senior management in driving some fundamental changes needed for good customer outcomes.
Mr Goh said MAS will fine-tune its approach to supervision of the market conduct of financial institutions, including greater probing of boards and senior management on the steps they are taking to embed fair dealing outcomes in all their processes, from product approval to staff incentive structures.
franchan@sph.com.sg
GST records adds to cost of doing business
The owner of a small business told me that the keeping of tax invoices to support GST has added to his cost of doing business. He has to keep separate records for the purpose of GST, which is additional to the records for preparing his accounting statements.
Do you agree with this view? If you are runnning a business that needs to comply with GST or have any friends in this situation, please share your views here.
Do you agree with this view? If you are runnning a business that needs to comply with GST or have any friends in this situation, please share your views here.
Health care reform in the USA
http://www.bloomberg.com/apps/news?pid=20601087&sid=aHgrHkW_rbLI
This may take the form of a national cooperative, owned by the policyholders. It has to be national-based, rather than state-based, so that it can have an efficient size.
The Obama Administration wants to offer a government-backed insurance program to compete with private insurance. The aim is to extend coverage to all Americans and bring down cost.
This may take the form of a national cooperative, owned by the policyholders. It has to be national-based, rather than state-based, so that it can have an efficient size.
Another proposal is to remove the restriction on using cost-effectiveness studies to pick which drugs and medical devices Medicare funds for the elderly and disabled. Supporters like evidence-based research to be used to make decisions to figure out what strategies work, then have incentives to use the best possible -- not only lowest cost, but most effective -- treatment protocol. This would result in significant savings.
The opponents argues along with other Republican opponents that such comparative effectiveness research would be use to ration care.
The final bill being discussed in Congress will include some kind of nonprofit entity to compete with private insurers, whether a co-op or government- run program. This will encourage competition and private insurers may not make as much money as they’re making currently.
Tan Kin Lian
Quality of life in Ipoh
Hi Mr Tan,
I went to Ipoh yesterday to visit the cave temples. I enjoyed myself very much there. Things are so cheap and with the limestone hills as a backdrop and low storied buildings, there is such a huge expanse of sky over you.
Here you really feel that there are other ways to live other the life I know, and it can be so pleasant and enjoyable.
From Jusco I tried to take a cab to the bus terminal. The taxi driver wanted to overcharge me so I decided to walk back. I thought it would be good to see the hills grow dark as night fell.
Unfortunately as night fell, I lost my bearings. Luckily, I was picked up by a retired police officer who delivered me to the bus terminalI treated him to a meal. He told me that he retired at 40 and is now a used car dealer. He is doing very well, enough to play an expensive game of polo on horseback every month.
I envied him. He took pride in his job as a police officer and is enjoying his life. I do not think such a quality of life is achieveable in Singapore. It echoed the taxi driver in Penang who said, "Singapore is a place where you make money and get out". He had worked in Singapore as a SBS driver.
I'm thinking of buying a place in Ipoh in the future!
REPLY
Thank you for telling me about your visit to Ipoh (which I last visited 35 years ago). I will be visiting Penang, Ipoh and Kedah next month. My friend in Kedah will take me around.
I agree with your views about the nice pace of life in Ipoh. But many people in Ipoh seemed to take a different view, as they leave this town to work in Singapore and Kuala Lumpur.
I went to Ipoh yesterday to visit the cave temples. I enjoyed myself very much there. Things are so cheap and with the limestone hills as a backdrop and low storied buildings, there is such a huge expanse of sky over you.
Here you really feel that there are other ways to live other the life I know, and it can be so pleasant and enjoyable.
From Jusco I tried to take a cab to the bus terminal. The taxi driver wanted to overcharge me so I decided to walk back. I thought it would be good to see the hills grow dark as night fell.
Unfortunately as night fell, I lost my bearings. Luckily, I was picked up by a retired police officer who delivered me to the bus terminalI treated him to a meal. He told me that he retired at 40 and is now a used car dealer. He is doing very well, enough to play an expensive game of polo on horseback every month.
I envied him. He took pride in his job as a police officer and is enjoying his life. I do not think such a quality of life is achieveable in Singapore. It echoed the taxi driver in Penang who said, "Singapore is a place where you make money and get out". He had worked in Singapore as a SBS driver.
I'm thinking of buying a place in Ipoh in the future!
REPLY
Thank you for telling me about your visit to Ipoh (which I last visited 35 years ago). I will be visiting Penang, Ipoh and Kedah next month. My friend in Kedah will take me around.
I agree with your views about the nice pace of life in Ipoh. But many people in Ipoh seemed to take a different view, as they leave this town to work in Singapore and Kuala Lumpur.
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