By Francis Chan
INVESTORS of DBS High Notes 5 went to the bank's Shenton Way headquarters yesterday to ask that an open forum be held for customers caught up in the debacle.
DBS said last night it was considering the request.
An investor, who wanted to stay anonymous, said she and two others gave a letter to DBS' consumer banking group head, Mr Rajan Raju, during the afternoon visit.
She said the letter contained signatures of 166 High Notes 5 investors identifying themselves as 'DBS's valued customers who have placed explicit trust in you and your organisation'.
The letter asked the bank's top brass to 'provide investors with a detailed statement of account for each series of the High Notes, from the inception until the latest available date' and to produce 'a valuation of each series of the notes at the latest available date'.
The group also asked the bank to organise a meeting with investors to help clarify various issues.
The letter, which was copied to the Monetary Authority of Singapore, also stated that the investors wanted Mr Gerard Ee to attend the meeting.
Mr Ee is the independent person appointed by DBS to oversee the bank's handling of complaints related to the sale of High Notes 5.
Over the last month, DBS has been accused of mis-selling the structured product, which went bad after the collapse of bankrupt US investment bank, Lehman Brothers.
But despite bearing the brunt of its customers' anger over the past month, the bank has been open to meeting investors.
'I must say that the senior management were very positive when they met us,' said the investor who handed over the letter.
'They even asked us if it would be better to hold a few meetings so that they could cater to more investors. I think that is a good sign.'
DBS officials met a small group of investors at its headquarters last Wednesday.
http://business.asiaone.com/Business/News/My%2BMoney/Story/A1Story20081023-95689.html
I have just received a registeed letter from DBS signed off by RAjan Raju informing me that there are two session scheduled for the dialogue
ReplyDeleteDate : Thursday 30 October
time : 1400-1500 (Session 1)
1700-1800 (session 2)
HS
Hi HS,shall we adopt a group strategy when we meet them especiallly in pressing them to state their position regarding compensation to those investors outside the vulnerable group
ReplyDelete4.25pm. could discuss this this Saturday at the speaker corner. I have registered for the second session.
ReplyDeleteSouth China Morning Post:
ReplyDeleteDBS Hong Kong will announce the buy-back price for Lehman structured notes next week.
http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=122f2d6057d2d110VgnVCM100000360a0a0aRCRD&ss=Hong+Kong&s=News
But despite bearing the brunt of its customers' anger over the past month, the bank has been open to meeting investors.
ReplyDelete'I must say that the senior management were very positive when they met us,' said the investor who handed over the letter.
'They even asked us if it would be better to hold a few meetings so that they could cater to more investors. I think that is a good sign.'
DBS officials met a small group of investors at its headquarters last Wednesday.
hahhahah the milk maid joining the milk cow hunt with diarrhea patients, what great PR, don ANYONE realise the milk cow is DEAD (and the milk maid is seeking 'alternative accommodation')
more meetings and u agreed wholeheartedly without pausing to think?
OMG.
Hi,
ReplyDeleteMy sister who signed the collective letter for group meeting has also received letter. Is any one bringing a friend or relative along? Is this allowed?
Like it or not, this is small investors against the big bank. Don't expect the bank to have mercy. It has all the brains to play tai-chi. Unity is strength. Those attending the sessions should organised themselves and get ready what to ask and how to react. It is better to go through the pricing statement and other documents, and gather all the evidence to show the bank why there is mis-selling, misrepresentation and non-disclose of material information.
ReplyDeleteHi,
ReplyDeleteI really share your grief and anger in this incident although I did not purchase any of this product.
I have worked in a bank before, and I also don't agree the hard selling method that they used...
I would like to share with you my views..
Please do not think that the bank is a unbeateable superpower.
Investors unity is the real power and strength...
In my view, the bank who is clearly at fault is even more scared than u investors in this incident..This is what u guys do not know...
Trust me unity is strength, if the product is clearly being missold...
THE BANK WILL CRACK UNDER PRESSURE...
I BET MY LAST DOLLAR ON THIS
It is how u going to fight this war..that u have to study and discuss.
I believe the bank also sent their own people down to speaker corners to act as investors and study your strategy..just be careful..
From... Justice
I am greatly sadden by the losses sufered by the HN5 investors. As an insider, I understand that the sale of high notes products was a highly profitable business for the bank. The product is doubly leveraged - the first-to-default risk and the underlying collaterialsed debt obligation.
ReplyDeleteEven in early 2007 where credit risk is severely underpriced, the return for the risk undertaken that is passed to HN5 investors borders on ridiculous. The bank keeps a fat margin.
I would suggest HN5 investors ask the bank to oepn its book on the structuring profit for high notes products.
Even if the bank refuses to compensate the 'non-vulnerable' investors, the bank should not be allowed to make money from them.
It also seems that the bank is not so truthful when they said that they were caught unaware by the collapse of Lehman Brothers. i understand that bank had bought CDS protection to hedge the bank's own exposure to Lehman, and have avoided trading with Lehman to reduce counterparty exposure as early as 1Q2008
I know this would drag DBS profit and shares price down further, but my guilt does not allow me to keep quiet.
It would be highly helpful if such sesseions can be video recorded and shown on mr. tan's blog. Or at least it should be reported entirely in the blog to let those who do not have the opportunity to attend see what is going on there.
ReplyDeleteMy RM just told me point blank that my investment is worth zero. DBS doesnt seem interested at all in compensating investors which do not fall into the vunerable group. We investors need to stay united and if necessary sue DBS collectively for misleading us up to the last moment and then claim that we should have read the fine print.After all DBS was the one who persuaded investors to invest in Hi Notes as a safe alternative to Fds.
ReplyDelete