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
Thursday, October 9, 2008
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.
Petition has been lodged
I have people asking me to add their names to the Petition that has been lodged. This is not necessary.
The Petition ask the Government to investigate. It is NOT the channel to register your claims against the distributor. It does not replace the work that you have to do to lodge your complaint with the distributor and FiDREC. It does not matter to your claim, if your name does not appear in the Petition.
You should lodge their complaint to the CEO of the financial institution that distributed the structured product. Read this webpage:
http://www.moneysense.gov.sg/publications/guides_publications/Consumer_Portal_Redress_Guide.html
The Petition ask the Government to investigate. It is NOT the channel to register your claims against the distributor. It does not replace the work that you have to do to lodge your complaint with the distributor and FiDREC. It does not matter to your claim, if your name does not appear in the Petition.
You should lodge their complaint to the CEO of the financial institution that distributed the structured product. Read this webpage:
http://www.moneysense.gov.sg/publications/guides_publications/Consumer_Portal_Redress_Guide.html
Hong kong: Curb on banks' investment sales aired
HKMA weighs halt to minibond business;
DBS bank offers payouts if buyers were misled
The Hong Kong Monetary Authority is considering a ban on banks selling complex investment products such as minibonds. It is one of the possible measures to be taken to protect small investors from financial turmoil....
http://www.scmp.com/portal/site/SCMP/menuitem.2c913216495213d5df646910cba0a0a0/?vgnextoid=2ffcff19872ec110VgnVCM100000360a0a0aRCRD&vgnextfmt=teaser&ss=Hong+Kong&s=News
Complaint to MAS against a financial institition
Read this webpage:
http://www.moneysense.gov.sg/publications/guides_publications/Consumer_Portal_Redress_Guide.html
Here is the online form
https://secure.mas.gov.sg/apps/wcmaweb/WebForm/WebCompForm.do
If you wish to write:
Monetary Authority of Singapore
Consumer Issues Division
Market and Business Conduct Department
10 Shenton WayMAS Building
Singapore 079117
Fax : (65) 6225-9766
http://www.moneysense.gov.sg/publications/guides_publications/Consumer_Portal_Redress_Guide.html
Here is the online form
https://secure.mas.gov.sg/apps/wcmaweb/WebForm/WebCompForm.do
If you wish to write:
Monetary Authority of Singapore
Consumer Issues Division
Market and Business Conduct Department
10 Shenton WayMAS Building
Singapore 079117
Fax : (65) 6225-9766
SCMP - DBS offers full compensationto mini-bond holders
SCMP Report by: Michael Logan
DBS Bank in Hong Kong has said it will offer full compensation to customers who bought mini-bonds issued by Lehman Brothers. Customers only need to prove to DBS that DBS staff misled them during the sales process
http://www.scmp.com/portal/site/SCMP/menuitem.02bb4e979f5e08d5df646910cba0a0a0/?vgnextoid=a5a3dce60f1ec110VgnVCM100000360a0a0aRCRD&vgnextfmt=teaser&ss=Blogs&s=Home&type=Audio
DBS Bank in Hong Kong has said it will offer full compensation to customers who bought mini-bonds issued by Lehman Brothers. Customers only need to prove to DBS that DBS staff misled them during the sales process
http://www.scmp.com/portal/site/SCMP/menuitem.02bb4e979f5e08d5df646910cba0a0a0/?vgnextoid=a5a3dce60f1ec110VgnVCM100000360a0a0aRCRD&vgnextfmt=teaser&ss=Blogs&s=Home&type=Audio
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