Wednesday, October 01, 2008

European Central Bank - an excellent approach

Hi, Mr. Tan,
I just heard BBC News (Radio88.9) at 8 pm: European Central Bank said banks selling risky products to investors must share risks. Don't know whether SM Goh and MAS officials heard this news.

REPLY
This is an excellent approach. More details are found here:
http://newsvote.bbc.co.uk/mpapps/pagetools/print/news.bbc.co.uk/2/hi/business/7646863.stm

Unfortunately, this proposal does not help investors who already bought the risky products in the past from getting compensation. The compensation has to be obtained through existing channels.
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3 comments:

Anonymous said...

All financial institutions must share in the responsibility. Every party involved in the transaction cannot disavow any knowledge and responsibility, from the adviser to the ceo of the company.

October 01, 2008 10:47 PM
Anonymous said...

ECB has set a good example.
We must benchmark against ECB and requested all FIs involved to share responsibility.
This is the best way to restore some confidence and achieve win-win for all.

October 02, 2008 6:42 AM
Anonymous said...

ECB and Hong Kong Govt have set good examples. Sadly, the Spore govt dont seemed to be doing anything for us. So far, we've only got SM Goh's sarcasm. And the banks/finance companies who sold the Minibonds, Pinnacle notes etc have happily pocketed our commissions. Sigh

October 02, 2008 8:36 PM

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