Hong Kong banks yesterday rejected suggestions they were offering refunds to investors in minibonds backed by bankrupt US bank Lehman Brothers, after a report that one had agreed to pay back a customer.
Mevas Bank, a subsidiary of Dah Sing Bank, issued a firm denial that it had refunded a customer. Standard Chartered, Fubon Bank, DBS, Chong Hing Bank, Citibank, Wing Lung Bank, Bank of China (Hong Kong), Chiyu Banking Corporation, Nanyang Commercial Bank and Shanghai Commercial Bank all said they had not concluded any refund agreements with clients. Bank of East Asia and Citic Ka Wah Bank said only that they were handling complaints. Other banks did not respond.
Since Lehman Brothers, the fourth-largest US investment bank, filed for bankruptcy on September 15, hundreds of investors have been demanding refunds from the banks and brokerages that sold them the minibonds – high-risk credit-linked derivatives marketed as proxy investments in well-known companies – and similar complex derivatives.
Hong Kong investors have bought HK$15.6 billion in minibonds and similar derivatives backed by Lehman Brothers. They stand to lose most, if not all, their money. A Chinese-language newspaper this week reported that Mevas Bank had agreed to a refund for a minibond investor. It quoted Democratic Party legislator-elect Kam Nai-wai, who is helping a group of the investors, as saying that the investor had asked that their name be withdrawn from a list of those seeking help. Mr Kam would neither confirm nor deny the report.
In response to Mevas Bank’s denial, he said: “It’s no surprise … They don’t want the other investors to know.” The Mevas investor declined comment. No other investors have withdrawn their requests to the Democratic Party for help. Some investors drew hope from the rumours. “
There’s justice in this world,” said Grace Lau Ngar-pui, organiser of a group of investors who bought Lehmanbacked investment products from ABN Amro, She also believes Mevas’ denial is a tactic to ward off other investors who want a refund.
Yesterday, for the first time, Secretary for Financial Services and the Treasury Chan Ka-keung discussed the complaints with representatives of the banks, brokerages, trustees, the Monetary Authority and the Securities and Futures Commission. The two watchdogs are, respectively, investigating the banks and brokerages which sold the investments. “I specifically urged the banks to seriously and quickly handle the complaints about the methods used for selling the minibonds,” he said.
The Hong Kong Association of Banks has decided to form a taskforce to deal with the minibonds issue. The authority has received 3,555 complaints about minibonds.
- ► 2020 (260)
- ► 2019 (1839)
- ► 2018 (1406)
- ► 2017 (1258)
- ► 2016 (828)
- ► 2015 (691)
- ► 2014 (144)
- ► 2013 (501)
- ► 2012 (1269)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1654)
09/28 - 10/05
- Greed and exploitation
- How to play Pro-Trader
- Pro-Trader Simulation Game
- In honour of J B Jeyaretnam
- Talk at NUS on 17 Oct 2008
- Minibond in Hong Kong
- Capital protection is not "capital guaranteed"
- Review internal complaints handling and resolution...
- Securities and Futures Act
- Petition to Singapore Government
- Not to be retailed in USA
- Petition to Singapore Government
- Banks deny refund deals for minibond investors
- Question for Member of Parliament
- Immense pressure to sell the structured products
- Meet your Members of Parliament
- Send feedback to NTUC Income
- Proposed Commission on Life Insurance Products
- Posting comments in my blog
- Failure to observe the risk assessment
- Ask your Member of Parliament
- Avoid going to court
- Merill Lynch Jubilee 3
- People to be blamed
- Loss of life savings
- Stop pushing financial products
- Hong Kong helping distressed people
- High commission and profits
- High risk investments
- Compensation to affected investors
- MAS announcements
- For defensive investors
- Hong Kong Government Meets Banks Accused Of Mis-se...
- Loss of hard earned money (2)
- In memory of Mr. J B Jeyaretnam
- Investigation into potential wrong-doings by finan...
- ANZ pays out $200,000 to elderly investor
- NTUC Income Money Market Fund (Flexi-cash)
- European Central Bank - an excellent approach
- Signing of Pettion
- Pressure on sales representatives to market certai...
- Fixed deposit with Singapore banks
- Saved by sound advice
- Pinnacle Series 11
- Tribute to Mr. J B Jeyaretnam
- Minibond Series 5
- Bank staff do not understand financial products
- HSBC Trustee
- High Notes 2
- Comments in my blog
- False Signatures at the Petition
- Mr. J B Jeyaretnam
- Complaint of mis-selling by bank
- FAQ on Minibonds
- Good and bad insurance products
- File a Police report
- Prospectus is too complicated
- Why did the banks continue to sell these products?...
- Loss of life savings
- Goh Chok Tong's comments on minibonds, high notes
- Credit Linked Securities - Wrong doings?
- Taiwan senator requests bank to buy back Minibond
- Diary of a Singapore mind - article on structured ...
- Article: Corruption in financial sector is the kil...
- Experience of investor (3)
- Template: Letter to Member of Parliament
- Investor contemplate legal action
- Sent to 940 Investors in Credit Linked Securities
- Will MAS help the investors?
- Hope for investors in Lehman Minibonds ?
- Unfair exchange rate
- Experience of investor (2)
- Focus list of investors
- Opinion of an investor
- Purpose of Petition
- What is a fair compensation for mis-selling?
- Template: Letter to financial institution (distrib...
- My blog will hit 500,000 visitors by 5 Oct 2008
- Action to be taken on CLS
- Negligent or dishonest acts
- Unable to give individual advice
- Call for volunteers - action on credit link securi...
- Fixed deposits are safe
- Experience of investor (1)
- Sales Materials and Prospectus
- ▼ 09/28 - 10/05 (85)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)