Saturday, November 21, 2009
Marketing of Portals
I wish to look for marketing associates who are interested to work from home to market the portals. Details are shown here. If you are interested, send an e-mail to kinlian@gmail.com.
Law Society - Speech by Michael Hwang
Read this speech by President Michael Hwang of the Law Society. He made reference to the Minibond saga.
Yield on a Life Insurance Policy
Microsoft Excel has a function to calculate the yield on a life assurance policy. You can get this function using Insert > Function > Financial > Rate.
Policy taken for 18 years
Monthly premium of $50
Surrender value at end of 18 years is $12,800
What is the yield?
You have to enter the following values in the RATE function:
NPER - number of periods: 18
PMT - payment: $50 X 12 = $600
PV - present value: 0
FV - future value: -12,700 (show as negative as the money is being received)
TYPE: payment type: 0.5 (for monthly payment)
This returns a value of 1.68%
Policy taken for 18 years
Monthly premium of $50
Surrender value at end of 18 years is $12,800
What is the yield?
You have to enter the following values in the RATE function:
NPER - number of periods: 18
PMT - payment: $50 X 12 = $600
PV - present value: 0
FV - future value: -12,700 (show as negative as the money is being received)
TYPE: payment type: 0.5 (for monthly payment)
This returns a value of 1.68%
The Big Squander
Paul Krugman wrote this article about the bailout of the banks during the financial crisis of 2008. The government should have insisted that the banks take a haircut on the credit default swaps that were bought from AIG. They did not. The banks obtained 100% payout on the CDS, which were funded by the tax payers. Now the banks can pay multi million dollar bonuses again. What a corrupt world.
Wonderful scenes of Paris
I just visited Paris. Here are some wonderful scenes of this beautiful city.
SCMP:Ex-DBS broker suspended over Lehman debacle
21 Nov 2009
A former employee of DBS Bank (Hong Kong) has been suspended from providing securities-related services for three months by the Monetary Authority after being found to have failed to disclose to a client the risk involved when selling a Lehman Brothers-related financial product.
It was the first disciplinary action taken by the authority since it received complaints about problematic sale practices of products linked to the bankrupt US investment bank.
The authority said yesterday that an investigation had found that Leung Wai-yu, who was registered with the authority to run securities-related businesses, had "failed to diligently disclose and explain to the client the product's risk".
She had also "failed to complete the risk-disclosure statement for the client in accordance with the bank's internal control procedures" when she was selling a client Lehman Brothers constellation notes, a derivative similar to minibonds also issued by Lehman, in March 2006, a spokesman said. He said the authority had suspended Leung's details from its register for three months from November 20 to February 19, during which time she could not take part in dealing in or advising on securities.
"This is the first time the HKMA has taken disciplinary action against a relevant individual in connection with a Lehman Brothers-related investment product," the authority's executive director responsible for securities enforcement, Raymond Li Ling-cheung, said. "There are other disciplinary cases which have reached an advanced stage and they will be announced in due course."
Leung left DBS in 2006 and works for the Bank of Communications. The authority said it had taken into account all the circumstances of the case, including the extent of the client's losses and the fact that Leung had no disciplinary history.
The action followed Leung's withdrawal of an appeal with the Securities and Futures Appeals Tribunal seeking to review the authority's decision. As of yesterday, the authority had begun disciplinary consideration of 765 Lehman Brothers-related investments other than minibonds. It is investigating 3,097 cases of Lehman Brothers-related non-minibond complaints and seeking further information on 1,292 cases. A DBS spokesman said it had reviewed every complaint by investors in the derivatives and had compensated those in which the sale might have been inappropriate.
Hong Kong investors lost billions of dollars on minibonds guaranteed by Lehman Brothers when the US investment bank went bankrupt in September last year. Minibonds are not corporate bonds, but consist of high-risk, credit-linked derivatives, marketed as a proxy investment in well-known companies.
A former employee of DBS Bank (Hong Kong) has been suspended from providing securities-related services for three months by the Monetary Authority after being found to have failed to disclose to a client the risk involved when selling a Lehman Brothers-related financial product.
It was the first disciplinary action taken by the authority since it received complaints about problematic sale practices of products linked to the bankrupt US investment bank.
The authority said yesterday that an investigation had found that Leung Wai-yu, who was registered with the authority to run securities-related businesses, had "failed to diligently disclose and explain to the client the product's risk".
She had also "failed to complete the risk-disclosure statement for the client in accordance with the bank's internal control procedures" when she was selling a client Lehman Brothers constellation notes, a derivative similar to minibonds also issued by Lehman, in March 2006, a spokesman said. He said the authority had suspended Leung's details from its register for three months from November 20 to February 19, during which time she could not take part in dealing in or advising on securities.
"This is the first time the HKMA has taken disciplinary action against a relevant individual in connection with a Lehman Brothers-related investment product," the authority's executive director responsible for securities enforcement, Raymond Li Ling-cheung, said. "There are other disciplinary cases which have reached an advanced stage and they will be announced in due course."
Leung left DBS in 2006 and works for the Bank of Communications. The authority said it had taken into account all the circumstances of the case, including the extent of the client's losses and the fact that Leung had no disciplinary history.
The action followed Leung's withdrawal of an appeal with the Securities and Futures Appeals Tribunal seeking to review the authority's decision. As of yesterday, the authority had begun disciplinary consideration of 765 Lehman Brothers-related investments other than minibonds. It is investigating 3,097 cases of Lehman Brothers-related non-minibond complaints and seeking further information on 1,292 cases. A DBS spokesman said it had reviewed every complaint by investors in the derivatives and had compensated those in which the sale might have been inappropriate.
Hong Kong investors lost billions of dollars on minibonds guaranteed by Lehman Brothers when the US investment bank went bankrupt in September last year. Minibonds are not corporate bonds, but consist of high-risk, credit-linked derivatives, marketed as a proxy investment in well-known companies.
Socialist Market Economy - China's Key to Success
Here is an interview with Wen Jiabao, Prime Minister of China. He expressed an insightful understanding of Adam Smith's theory of economics. He pointed out that Adam Smith actually wrote two books - on the invisible hand (i.e .market) and the visible hand (i.e. role of government). When economist applied only one side of Adam Smith's theory, the results are not satisfactory. It is now time for Singapore to learn from China about economics and governance. View this interview.
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