10 October 2008
MAS publishes timeline for Minibond resolution process
The Monetary Authority of Singapore (MAS) has published a timeline for the resolution process for investors who bought Lehman Minibonds. The trustee (HSBC Institutional Trust Services Singapore), which is in charge of overseeing the Minibond products, has informed the MAS that it has not received any firm offers from potential new swap counterparties to replace the now bankrupt Lehman Brothers in the Minibond progamme. The MAS has said that the trustee does not expect any firm offers and will commence the selling of the underlying securities in two weeks.
If in the event of a swap counterparty being found the replacement swap proposal would require at least 75% of the votes cast by the noteholders at an extraordinary general meeting. However if a firm agreement is not reached within two weeks the trustee will commence the enforcement process for Series 5 and 6 of the Minibonds, which will ultimately entail selling the underlying securities in an orderly fashion and using the proceeds to pay the noteholders after deducting any other liabilities which are payable.
The total issue size of the Minibond programme was SG$508 million, of which S$375 million was sold to about 8,000 retail investors through nine distributors. Meanwhile SG$23 million of the total SG$28 million of Merrill Lynch Jubilee Series 3, which referenced Lehman Brothers, were sold to about 350 investors through six stockbroking firms. Over 80% of the Minibond programme and Merrill Lynch Jubilee Series 3 noteholders invested up to SG$50,000, with 28% having bought SG$10,000 or less. In the case of DBS High Notes 5, which also referenced Lehman Brothers, over 1,400 investors bought SG$103 million worth of notes. More than half of them invested SG$50,000 or less.
As of 10 October 2008, the ten distributors of the Minibond programme, Merrill Lynch Jubilee Series 3, and the DBS High Notes 5 have received 680 formal complaints from investors.
http://www.structuredproductsonline.com/public/showPage.html?page=819778
Friday, October 10, 2008
Climate of fear and intimidation
Someone sent a warning to me that I may be a risk of being sued for defamation - because I organise a petition to ask the Government, especially the Commercial Affairs Department, to conduct an investigation into the credit linked securities.
He reasoned that this petition implies that there were wrong doing by the parties involved in the credit linked securities, and they may consider that I have defamed them.
I rejected this reasoning. But a few other people seem to think that this is a possibility and advised me to "be careful".
This reflects a very sad state of affairs in Singapore. There is a climate of fear, even of speaking out against injustice and wrong doing. It is so easy for big business and powerful people to intimidate the weak with the threat of lawsuit.
He reasoned that this petition implies that there were wrong doing by the parties involved in the credit linked securities, and they may consider that I have defamed them.
I rejected this reasoning. But a few other people seem to think that this is a possibility and advised me to "be careful".
This reflects a very sad state of affairs in Singapore. There is a climate of fear, even of speaking out against injustice and wrong doing. It is so easy for big business and powerful people to intimidate the weak with the threat of lawsuit.
Risky to trade on leverage
Dear Mr. Tan,
The various major newspaper are now flooded with many advertisments about "Good Money, sure profits" for various financial products such as Forex, option and futures etc.
These products are highly leveraged and they is no way that it is "Sure profit and easy money" as advertised, which would be disaster for innocent layman trying to beat the market. For one, these markets are played by the most experience trader/banker with extremely deep pocket and definitely not simple as advertised.
From my wild guess, these advertisement would try to get innocent laymen to come to their course to collect course fees. Laymen without good knowlege would only end up paying for the course fee plus the loss for sure.
I hope you could also bring these issues to the hugh readers of yr blog to be wary before getting into these trading.
MOST IMPORTANTLY, these advertisment must state warning "Leverage products are highly risky and could result in hugh financial loss" which seem that the people in ST does not require the advertiser to do so.
The various major newspaper are now flooded with many advertisments about "Good Money, sure profits" for various financial products such as Forex, option and futures etc.
These products are highly leveraged and they is no way that it is "Sure profit and easy money" as advertised, which would be disaster for innocent layman trying to beat the market. For one, these markets are played by the most experience trader/banker with extremely deep pocket and definitely not simple as advertised.
From my wild guess, these advertisement would try to get innocent laymen to come to their course to collect course fees. Laymen without good knowlege would only end up paying for the course fee plus the loss for sure.
I hope you could also bring these issues to the hugh readers of yr blog to be wary before getting into these trading.
MOST IMPORTANTLY, these advertisment must state warning "Leverage products are highly risky and could result in hugh financial loss" which seem that the people in ST does not require the advertiser to do so.
Feedback on complaint handling process
MAS advises investors who feel that they have been mis-informed about the structured product to lodge a complaint with the financial institution that sold the product.
If you wish to give your feedback on your experience in lodging the complaint, please send an email to atans1@hotmail.com with the following information:
1. Your name, age, occupation, telephone, e-mail
2. Date of complaint, financial institution, name of offices who attended to you
3. Did the officer explain the process? What did they say?
4. Did they listen to you and record the details of your complaints fairly? Did they help you to record the complaint?
5. Were they defensive? Did you challenge you about the facts of your complaints?
6. Are you satisfied with the process? If not, why?
7. Do you get the impression that your complaint will be attended to fairly?
If you wish to give your feedback on your experience in lodging the complaint, please send an email to atans1@hotmail.com with the following information:
1. Your name, age, occupation, telephone, e-mail
2. Date of complaint, financial institution, name of offices who attended to you
3. Did the officer explain the process? What did they say?
4. Did they listen to you and record the details of your complaints fairly? Did they help you to record the complaint?
5. Were they defensive? Did you challenge you about the facts of your complaints?
6. Are you satisfied with the process? If not, why?
7. Do you get the impression that your complaint will be attended to fairly?
Difficulty with travel insurance claim
Dear Mr Tan,
Recently I was holidaying in New York and had travelled to Niagra Falls by road where my hand bag together with my travel documents were stolen. Hence, without any travel documents I was refused entry into New York. I had to fly to Vancouver to get my temporary passport made at the Singapore Consulate and flew home from there. As a result, my luggage was left behind in New York.
I had a travel insurance with a leading insurance Company. I sought advice from the insurance Company's claim officer regarding my luggage that was still in New York. I was told to do what is necessary to bring back my luggage first and to follow up with the details later. I arranged for Fedex to send my luggage back and then submitted a claim for the freight cost. Three weeks have gone past and have not heard from the insurance Company. I gave them a call and was told that I cannot make any claim for the cost of sending back my luggage; the reason given was that my travel insurance does not cover freight cost.
Please advise if I am entitled to make this claim and to whom can I turn to for assistance if I were to pursue this matter.
REPLY
I think that you are entitled to claim for the freight cost as you have done it at the request of the insurance company in connection with your claim. It is bad that they now reject your claim for the freight cost. If they do not pay your claim, you can lodge a complaint with FiDREC (www.fidrec.com.sg).
I find the claim handling of this insurance company to be deplorable.
If the claim is not paid, you can send a formal complaint to the CEO of the insurance company. If it is still rejected, you can file a complaint with FiDREC (www.fidrec.com.sg)
Recently I was holidaying in New York and had travelled to Niagra Falls by road where my hand bag together with my travel documents were stolen. Hence, without any travel documents I was refused entry into New York. I had to fly to Vancouver to get my temporary passport made at the Singapore Consulate and flew home from there. As a result, my luggage was left behind in New York.
I had a travel insurance with a leading insurance Company. I sought advice from the insurance Company's claim officer regarding my luggage that was still in New York. I was told to do what is necessary to bring back my luggage first and to follow up with the details later. I arranged for Fedex to send my luggage back and then submitted a claim for the freight cost. Three weeks have gone past and have not heard from the insurance Company. I gave them a call and was told that I cannot make any claim for the cost of sending back my luggage; the reason given was that my travel insurance does not cover freight cost.
Please advise if I am entitled to make this claim and to whom can I turn to for assistance if I were to pursue this matter.
REPLY
I think that you are entitled to claim for the freight cost as you have done it at the request of the insurance company in connection with your claim. It is bad that they now reject your claim for the freight cost. If they do not pay your claim, you can lodge a complaint with FiDREC (www.fidrec.com.sg).
I find the claim handling of this insurance company to be deplorable.
If the claim is not paid, you can send a formal complaint to the CEO of the insurance company. If it is still rejected, you can file a complaint with FiDREC (www.fidrec.com.sg)
Thursday, October 9, 2008
Lehman Bond Probe Widens
Wall Street Journal
Friday October 10, 2008
Lehman Bond Probe Widens
By JACKIE CHEUNG
HONG KONG -- The Hong Kong Monetary Authority said Thursday it is investigating nine banks over sales of Lehman Brothers Holdings Inc. "minibonds" that sparked protests from investors who said they were duped into thinking their money was safe.
The HKMA has received 7,730 complaints about the minibond sales and has opened 41 investigations, HKMA Deputy Chief Executive Y.K. Choi told a news conference.
Mr. Choi said the regulator supports a proposal for banks to buy back the products at market value, which would be less than what they were sold for, and he said some banks have backed that idea as well.
Mr. Choi didn't identify the banks being investigated or provide figures for money lost by investors who invested in the structured products known as minibonds, which allegedly were marketed as secure bonds.
Mr. Choi said the HKMA might consider whether to stop retail banks from selling structured products like the Lehman minibonds and leave such dealings to professional investment consultants.
Investors have staged protests, with some complaining they lost millions of Hong Kong dollars in the minibonds tied to Lehman Brothers, the former Wall Street powerhouse that filed for bankruptcy protection last month.
One protest was held Wednesday outside the headquarters building of Bank of China Ltd.'s Hong Kong unit, BOC Hong Kong (Holdings) Ltd., with a group of investors going inside at one point to meet with bank officials.
A BOC Hong Kong spokeswoman, Carol Tam, said Thursday the bank had sold Lehman Brothers structured products. Ms. Tam said she wasn't aware of the bank being investigated but that it would cooperate with authorities if asked.
Mr. Choi said if irregularities are uncovered by the investigations , the HKMA will refer the matter to the Securities and Futures Commission.
http://online.wsj.com/article/SB122358113693820081.html?mod=googlenews_wsj
Friday October 10, 2008
Lehman Bond Probe Widens
By JACKIE CHEUNG
HONG KONG -- The Hong Kong Monetary Authority said Thursday it is investigating nine banks over sales of Lehman Brothers Holdings Inc. "minibonds" that sparked protests from investors who said they were duped into thinking their money was safe.
The HKMA has received 7,730 complaints about the minibond sales and has opened 41 investigations, HKMA Deputy Chief Executive Y.K. Choi told a news conference.
Mr. Choi said the regulator supports a proposal for banks to buy back the products at market value, which would be less than what they were sold for, and he said some banks have backed that idea as well.
Mr. Choi didn't identify the banks being investigated or provide figures for money lost by investors who invested in the structured products known as minibonds, which allegedly were marketed as secure bonds.
Mr. Choi said the HKMA might consider whether to stop retail banks from selling structured products like the Lehman minibonds and leave such dealings to professional investment consultants.
Investors have staged protests, with some complaining they lost millions of Hong Kong dollars in the minibonds tied to Lehman Brothers, the former Wall Street powerhouse that filed for bankruptcy protection last month.
One protest was held Wednesday outside the headquarters building of Bank of China Ltd.'s Hong Kong unit, BOC Hong Kong (Holdings) Ltd., with a group of investors going inside at one point to meet with bank officials.
A BOC Hong Kong spokeswoman, Carol Tam, said Thursday the bank had sold Lehman Brothers structured products. Ms. Tam said she wasn't aware of the bank being investigated but that it would cooperate with authorities if asked.
Mr. Choi said if irregularities are uncovered by the investigations , the HKMA will refer the matter to the Securities and Futures Commission.
http://online.wsj.com/article/SB122358113693820081.html?mod=googlenews_wsj
ST Index approaching 1900
It appears that the ST Index is now approaching 1900. Read this blog:
http://tankinlian.blogspot.com/2008/09/how-far-more-for-st-index-to-fall.html
I hope that it will not go below this level.
http://tankinlian.blogspot.com/2008/09/how-far-more-for-st-index-to-fall.html
I hope that it will not go below this level.
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