South China Morning Post (Hong Kong) - October 12, 2008
Author: Loretta Fong, Celine Sun and Eva Wu
The controversy over the sale of minibonds to small investors held a lesson for banks, the Hong Kong Monetary Authority's executive director said yesterday.
"A bank's reputation can easily be jeopardised when it sells high-risk derivative products to small investors. I think we need to review this practice in future," said Raymond Li Ling-cheung.
The authority has received 8,300 complaints from investors in minibonds issued or guaranteed by bankrupt US bank Lehman Brothers.
Hongkongers bought HK$15.7 billion of minibonds and related complex derivatives from banks and brokerages and stand to lose much or all their money. Many claim banks mis-sold the products as low-risk.
Of the complaints it has received, the authority has so far assessed 600 and found 71 require investigation.
Banks or their staff found to have misled customers may be fined or censured or may have their business licences suspended.
Minibond buyers seeking to recover their investments held fresh talks yesterday with some of the banks that sold them. HKMA deputy chief executive Choi Yiu-kwan said the government's proposal that banks buy back minibonds at current value was the best way for them to recover some of their losses.
The authority is preparing a report for the government on the sale of minibonds.
Meanwhile, Hong Kong Exchanges and Clearing chairman Ronald Arculli admitted its board of directors did not study an internal report drafted five years ago that warned of a lack of oversight of the sale of complex derivatives such as minibonds.
"Colleagues passed the report to the management. But it was found that the worries exposed by the report would not affect much the operations of HKEx. Thus there was no follow-up afterwards," he said.
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10/12 - 10/19
- Breach of the law - arguments
- Speech at Speaker's Corner - 11 Oct 2008
- Fall outside "vulnerable investors"
- Statutory declaration - Glenn Knight
- Lost the sense of bonding and togetherness
- Today: Man with a Mission
- TV news on MAS conference
- Investor meets HSBC Trustee
- Prompt reply to help "lost" investors
- Interview with Zaobao
- Interview with Today Paper
- MAS Media Release on Structured Products
- Meeting at Speaker's Corner 18 Oct, 6-7 pm
- Ray of light and hope
- Act with honour and integrity
- HKMA refers Lehman cases to regulator
- Dow Jones: Hong Kong banks will buy back mini-bond...
- Appeal to Financial Institutions - settle through ...
- A new financial system - back to the safe old days...
- Ponzi Scheme
- Caring and responsible country
- Petition to MAS - review sales training and market...
- HK: Tsang vows to get justice for minibonds invest...
- Petition to investigate the sales training
- Who let the sharks in?
- Fearful about speaking
- MAS International Advisory Panel (IAP)
- Impact of an offer to settle
- Hong Kong Chief Talks Tough on Minibonds - Bravo
- Request for MAS to give an update on the Petition
- Statement by DBS CEO
- Negotiate with financial institutions
- Hong Kong: Minibond fix may prove a risky business...
- New "petition" to collect particulars of investors...
- Jubilee Series 3 LinkEarner Notes
- Facilities at Speaker's Corner
- Strategy Committee for CLS
- Statutory declaration - 2 lawyers
- Statutory declaration - FiDREC
- Take collective legal action now?
- To the victims - be strong
- Caveat emptor: A licence to cheat
- Individual advice
- Specific product or distributor
- Effort to help the victims
- Meeting of High Notes investors
- The Online Citizen
- Ignorance and greed
- Protest outside DBS headquarters
- Leveraging and greed
- DBS will take responsibility, in some cases
- DBS to settle case by case: Rebecca Lee
- Look at the Product Advice
- Sales representatives did not know - misrepresenta...
- Hong Kong Lawmakers Criticize Bks Over Lehman-Back...
- FAQ from investors (1)
- Concern about disorderly behaviour
- Sales representatives should tell the truth and ad...
- HK legislators criticize regulators over bonds
- Credit linked securities were highly risky, even i...
- Low cost investment funds
- Elected President of Singapore
- Hit by Forex Losses
- Dual Currency Deposit (DCD)
- Weekly Speeches at Speaker's Corner
- Tan Kin Lian's speech at Speaker's Corner
- Minibond invetors are not risk takers
- Big loss on dual currency investment
- Forex or dual currency transactions
- SCMP: Banks risked reputations, watchdog says
- Nadya "Speaker" Zagarodnova
- Send this message to your Member of Parliament
- Weekly meetings at Hong Lim Green?
- Why the credit linked notes are highly risky
- Speaker's Corner - 11 October 2008
- Panic of AIA policyholders
- New blog for investors of Credit Linked Securities...
- STI Exchange Traded Fund
- Investing in difficult times
- Speech at Speaker's Corner: 11 Oct 2008
- Channel News Asia - report on Speaker's Corner
- Hong Kong: DBS first bank to repay bonds
- UOB Structured Notes
- Structured products are not sold in the UK
- Blogs for investors
- Volunteers to lead groups of investors
- Fight for the weak
- You have to take the risk and bear the loss
- Upset investors turn up at Speakers' Corner
- Greedy for profits
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