1. At what point did you decide to take action and act for the investors?
Reply: I was shocked to read in the papers about the failure of the Minibonds, High Notes and Jubilee Notes, due to the collapse of Lehman Brothers. I did not like these structured products, but but I was not aware (until the collapse) that it could be so serious. I believe that there is something seriously wrong with the creation and marketing of these products, and that there is some possible wrong doing. I decided to organise a Petition to ask the Government to investigate if there were any wrong doing. This was done about one month ago. The Petition attracted 983 signatories.
2. Why did you decide to act for them, especially since you're not a victim yourself?
Reply: I consider it to be a public duty. If I find that there is something wrong and some many people are affected so badly, it is my responsibility as a citizen to help them to find redress. Actually, this is the resonsibility of the people in the Government. Perhaps they are too busy or not aware of the seriousness of the problem. I hope to raise their awareness, so that they can come forward to use their immense resources to do what needs to be done. After that, I can take a rest.
3. What incensed you the most about this whole saga?
Reply: Occasionally, I get angry. Most of the time, I am quite calm, in spite of the tremendous pressures that I faced in dealing with many distressed investors asking desperately for help.
I am angry that these structured products were allowed to be marketed to retail investors and that they were pushed by the financial institutions who has the responsibility to make the appropriate recommendation to the retail investors. I am angry that, even now, these parties are still not coming forward to do "the right thing". They are adding to the distress of the investors.
I appeal to them to act:
http://tankinlian.blogspot.com/2008/10/act-honourably.html
4. Do you personally know anyone who has bought these failed products?
Reply: I get to know many, many people who have bought these failed products, after the Petition was launched. They told some many heart rending stories to me. I passed their particulars (with their consent) to many journalists from the various mainstream papers, to interview them.
5. Many have hailed you as a hero in this saga. What are your thoughts on that?
Reply: I understand from history that many heroes died in the battle. I hope that I can survive and live to an older age.
6. What is the most heart rending story you've heard from any of the investors?
Reply: There are too many stories that fit into this category. I do not wish to degrade any of them, by singling out one story.
7. How do you think MAS has dealt with this crisis? Are you satisfied with what they've done?
Reply: I do not wish to pass any judgement on MAS. I have suggested in my Petition and in my blog, various actions that MAS could take to resolve this crisis. I hope that they will invite me for a dicussion on some of these suggestions. I also hope that they will adopt some of these suggestions to help resolve the crisis.
8. How do you think the petition and affidavits will help?
Reply: The Petition ask the Singapore Government to investigate if any of the laws had been breached. They are the Financial Advisers Act (section 27), Securities and Futures Act (section 199) and the Trustees Act and to take the appropriate action (if these laws have been breached).
The statutory declaration (previously referred to as the affidavit) allows the investors to give their honest statment under oath, regarding the assurances and explanations that they have received verbally from the sales representatives. They need to have a sworn statement as these statements may contradict the standard forms that they have signed (where the contents were not properly explained to them). We need the statutory declarations of hundreds or maybe thousands of investors to confirm that they were indeed given the wrong information to make their decisions.
9. What do you hope to see happen?
Reply: I hope that there can be a fair settlement. I hope that the financial institutions will offer to compensiate the investors for 50% to 80% of their loss.
Mr Tan, you are our hero.
ReplyDeleteAnd you are right, nobody in spore would want to be a hero, if there is a choice.
I agree, cheers to you Mr Tan. finally all these issues is being given the limelight lately and today after so long our SM, Chairman spoke since his last comment about putting our savings into CPF instead.
ReplyDeleteMr Tan, I hope your team could garnered for 100% refund and not lesser. The people has to stay united, unity is power, that's what the FIs fear most. The FIs will try to break this unision.
We need to set deadline for MAS and FIs. The longer they delay, people's confidence in the 'team' will just die down.
Besides getting lawyers to write, I hope we could gather signatures to ask for answers and not just the standard answer 'we are investigating', will look at case by case. If 1000 investors have similar issues, it is already a justifiable case.
Just becareful, our authorities will rope in FIDREC and other parties who may even have indirect 'interest' with FIs.
Mr Tan and team, keep it up. If your team need more helpers do make known through the blog, i am sure you will have more helpers.
Response to 7.20. We have to be realistic. Lehman has collapse, the low risk company has folded, unfortunate. All the investors who own notes that has the company should prepare to take some loss. It is the extend of the loss that we are talking about. If there are 5 entites (including Lehman), we should take at least 20% loss in the capital.
ReplyDeleteShould Mr. Tan one day decided to setup an opposition party, I believe he will really be the true force that could compete with PAP.
ReplyDeleteThe future of Singapore will be much brighter..
Hi 2:05 PM
ReplyDeleteIf I get involved, I will set up a "political party" and not an "opposition party". Do not assume that PAP will always be the "ruling party".
I never expected you to say this so explicitly. Since you did, I offer you my support and my best wishes. Ethical politicians are hard to find these days.
ReplyDelete"we are investigating, will look at case by case"
ReplyDeleteThis is a blatant "divide and rule" tactic. Petitioners should remain united or your cause will fail.
Mr Tan, thank you for standing up for all investors. In the past "hero" usually die first, especially if directly against some establishments......but in this case, it is different. You are just speaking the truth and helping victims. And there isn't any religion, race or sensitive issues that you are poking into.....
ReplyDeleteI am a victim of sorts and have both high notes 2 and minibonds. i am extremely disappointed with the way DBS has handle the whole issue especially HN2. While I am aware of the risk link to the reference entity, I am not aware of the risk that came with Constellation (all they told us is the risk with the reference entity). For 2 good years after I bought HN2, DBS did not even tell us the securities that were held and that investors were subjected to the risk of 100 companies. Suddenly they decided to come clean and publish the list. And they keep telling you that all risk are in the subscription form and prospectus. To be honest, how many people can really understand the legalistic jaron, reference, cross references in all those documents? This has nothing to do with whether you are English-Educated or not.......And don't bother calling them.....their scripts are crafted to tell you that you are at fault for not reading all the forms....
If one take a look at the list of 100 company, one could see that they are all Senior notes. How could one single default by Lehman Brothers wipe out almost all of the value of the protfolio? By the way, Freddie and Fannie Notes are also senior and the US government had said that "bond" holders will be protected. For Freddie and Fannie, the market has already auction off a value for the Credit Default Swap. Thus I still do not understand how could the portfolio be at 11.5%
Enough of complaining. My feel is that the worst scenario now is to "mark-to-market" and liquidate the portfolio. The next best thing is really to hold out and wait for it to mature. DBS should come clean and be transparent about what is actually held in the portfolio and the risk investors are subjected to.
The same for minibond. If liquidated, the value should be very low, so the best solution is really to have a counter swap party and continue the issue.
My heart goes out to those who have HN5....
The newspaper seems to picture minibond and hn holders to be greedy etc etc. I believe that all are very conservative people who were asked to invest in what is "as safe as fixed deposit". A Marketing gimmick. Now who is greddy??
Response to 11.24AM
ReplyDeleteFor cases that proved that there is indeed mis-selling and mispresenation by the FIs, nvestors should get back 100% because this is cheating by the FIs, this is against the law. Why should the victims take part of the loss ?? Indeeed, the FIs should even be made to pay compensation !