Tan Kin Lian's Blog: Big loss on dual currency investment

Sunday, October 12, 2008

Big loss on dual currency investment

Dear Mr Tan,

My mother told me that she invested in a dual currency investment ( USD, New zealand dollar, yen) for about USD $500K from her retirement saving, and suddenly the bank told her that she lost all her money, and if she want to stay and get her money back she need to inject another $500k.

So what should we do, I'm not familiar with dual currency investment, and neither does she. Does it means that she lost all her retirement money? Is it true if we inject the money $500k will cover the lost for the other 500k?

I really appreciate your advice.

REPLY
Please ask your mother to get a detailed statement and explanation from the bank. You can send it to me.

You can register the particulars of your mother in this Petition:
http://www.PetitionOnline.com/PCFXT1/petition.html

8 comments:

Everlearning said...: This is another evidence that banks are not accountable for the losses they caused by their recommendations of dual foreign currency investments to depositors of foreign currency.
My foreign currency fixed deposit was put into this when it matured by the banker's recommendation.
Don't be deceive by injecting another $500k. Get out of an investment than plunging in further. The loss could be even greater.
That's why I have the notion now that banks have turned into high-class gambling dens.; October 13, 2008 8:24 AM
Anonymous said...: Dual currency investment will not lose 100% of the principal. You better accompany your mother to the bank to find out what product she has bought. Never inject another $500K. Your mother will get conned again. My advise to you is to find out more details.; October 13, 2008 11:40 AM
Anonymous said...: i've been doing dual currency investments for about a year and with different banks. i do that because i need alternative currency to divest. the exchange rates through dual currency is better than direct exchange.

and i have not lost 100%. i just get the money back in alt currency. and i keep the money in alt currency.

currencies like stocks will go up and down. if you have the time or need for alt currency. no harm doing it.

and no, banks dont really do analysis. RMs just fill in the form for paper work, ticking the app box so that you are med-risk or high-risk so that that they can sell you the product. these products are not for low risk investors.; October 13, 2008 2:24 PM
Anonymous said...: in essence DCD is unlikely to lose all but if this lady has allowed her banker to switch from 1 ccy to another at each strike in of the DCD, there is a possibility that she could be left with pennies now.

the buyer must be aware of the DCD structure, it is yet another fairly complex product although not as complex as derivatives structured notes.; October 13, 2008 2:29 PM
Anonymous said...: The RMs will call and tell you a story every month when it expires. Too dependent on them. Indirectly got to pay for their calls.

Difficult to make money. Cut loss and forgot about it.; October 13, 2008 9:32 PM
symmetrix said...: DCD are genarally not as dangerous as CLS. Eg those who bought AUD at its peak about a month ago now incur a loss of about 30%. The AUD is a fairly reputable currency and may slowly appreciate. It may be worth the while to hang on to it.; October 14, 2008 5:26 PM
Anonymous said...: again i would like to say that blame needs to be laid fairly on both:

1. investors have responsibility to do their own homework and research. this cannot be outsource to an RM. If you invest in currency, commodity - you need to read up and understand it thoroughly before investing.

2. RM - dont really know what they are talking about most of the time. blind leading the blinder at times.

Michele; October 14, 2008 10:25 PM
Anonymous said...: If these are just jokes they are not so amusing.

If these are real encounters, the investors should come to me for advice/assistance; July 08, 2010 3:13 PM