Comment posted in my blog
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.
Even 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.
The Petition #1 ask the Government to investigate the creation and marketing of the products. In my supporting document, I asked the Government to look into the accounts for the structured products to see how much money is taken away by the product issuer and the marketeer.
I hope that MAS will pursue this matter. If not, I will ask a Member of Parliament to raise this matter in Parliament.
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10/26 - 11/02
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- Why are banks allowed to sell structured products ...
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- Scuffle in HK Protest Over Lehman-Linked Products
- Speaker's Corner - 1 Nov 2008 5 to 7 pm
- Speaker’s Corner 1 November 2008 - Speech
- Use your real name
- Educate the public about the structured products
- Invest in transparent and fair products
- Petition #4 - Review Complaint Handling Process
- High Notes Investor Group - Press release 30 Oct 0...
- Buy Government Bonds through ATM
- Undergraduate reply to Prof Lan
- News about Jubilee Notes arranger
- Conflict of interest between bank and customer
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- Financial Services Authority fines Lloyds Bank in ...
- Reply to Today Paper - "Structured Products ....."...
- Be empathic to investors who lost their savings
- LET'S NOT FORGET ABOUT PERSONAL RESPONSIBILITY'
- Misleading Prospectus
- Thomas Jefferson's views on the banking system
- Talking point - minibonds and structured products
- Videos about speeches in Speaker's Corner
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- High risk from inception
- Do you hear the people sing - version #4
- Mini-bond investor gives his view
- Savings of retired workers
- Collective legal action (1)
- Buying Government Securities
- Regulator should disallow the sale of bad products...
- Singapore Kopitiam Forum
- Nature and risk of the structured product
- Make Government Bonds easily available
- Not a happy time for me
- Misleading advertisements
- Why does the stock market fall?
- Unconditional help from volunteers
- NUS dean also exposed to loss
- Enforce the law
- Well regarded persons oversee the financial instit...
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- Jump on bandwagon
- Malaysia act against land banking
- Can investors understand CDO?
- Biggest loss in the the structured products
- CLSA Asks 500 Staff to Take Pay Cuts of Up to 25%
- Collapse of the global financial system
- Lehman Brother bond
- A fair compensation
- Prospectus needed
- A fair rate of return
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- Complaint Form
- It will be handled 'fairly'
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