Tan Kin Lian's Blog: Social responsibility to Singaporeans

Saturday, October 11, 2008

Social responsibility to Singaporeans

Dear All ,

We, the unfortunate lot of Spore's DBS High Note investors( mostly people in their 50's to 70's ) who have gathered this evening at the Hong Lim Green to seek redress from their beloved National Bank ( DBS ) which they have given so much support with their financial support over the last 30-40 yrs wish to thank the repoters for lending us their ears.

Few interesting points I picked up :
- Retired clerk who entrusted 125K of her piggy bank to HN5 said it was heart-rending to learn a new word : Credit event which threatens to wipe out all her hard earned life savings which she was made to believe was a safe investment BUT now told all the risk exposures of 100 companies ! - unbelievable lies.
She also uttered that DBS as a National Bank ought to shoulder its SOCIAL RESPONSIBILITY towards Sporeans, especially to its "treasured customers "

-This is ridiculous, Singapore branding itself as a regional financial hub in good times and yet doing the least in bad times. Even Hong Kong government is doing something now after Taiwan, what is our Government doing for us.

What a let down!!

CSC

7 comments:

Anonymous said...: Hi all,

I was present at the speaker's corner this evening together with other high notes investors. It is heartening to know that everyone is willing to put up a fight. However, i did realize no committee was formed to handle this issue as of now. It was rather messy, even with the plan that was supposed to be carried out the following week. I guess it is necessary for an e-group (such as yahoogroups) to be formed asap to facilitate our discussion for any plans ahead. Bear in mind that if we are in-organized on the fateful day, things will backfire and we might never have a better chance to negotiate with DBS.

regards
ak; October 12, 2008 12:47 AM
Anonymous said...: Our govt is planning ahead! The MAS Chairman has gone to China advising them how to be a financial hub. Then he went to India and taught them how they can keep up with China. The first wave of American banks and their CDOs are history. They are preparing us for the next big wave from China and India. More Good Years!; October 12, 2008 1:37 AM
Anonymous said...: Dated : 11th October 2008.

Dear Mr. Tan

Ever since the legacy of Minibonds and HN5, I am having a nightmare of my investment towards HN10, which DBS, is the issuer and the Reference Entity is Capital Land Singapore. This note has just launched before the USA Financial crises. After the shocking news, I have approached my DBS, Senior Relationship Manager regarding this issue. She had explained that MB/HN5 and HN10 are two different scenarios as Capital Land Singapore is a well-reputed company which owns many lands, shopping centre and they also have many million dollars ongoing projects. On the other side, CL also partly DBS related company Property owner not money lender like Lehman Brothers and other USA Bank. Singapore Bank and company are protected by Government regulation. She had also assured it is 100% safe and I will be able to enjoy the half yearly interest and wait for maturity which is 3 years ahead.

I have tried to get her explanation about, I was not informed which I may loose whole or some of money if Credit Event occur. I wasn’t informed what I am hearing now about HN2 and HN5. I was looking something that capital guaranteed as the money is children savings for their education which she knows too. Her answer was still the same as nothing will happen as this is Singapore Bank and Capital Land is a property owner and not a mortgage company like Lehman Brothers.

I am a very conservative family person who had never involved in any betting, share or any other risky business. If you look through my financial analysis by the Bank. They have also said the same things. Currently, I am really having a nightmare, what shall I do? Shall I withdraw my investment of 100K now, which I fear may lose 10-15% of capital?; October 12, 2008 1:46 AM
Anonymous said...: I agree MAS actions so far has been a let down. So much for a financial hub and caring government that take care of it's citizens; October 12, 2008 9:02 AM
Wealth Journey said...: Anonymous 1:46AM

2 things you can do to answer your own query:-
1) Is your RM's word worth its weight in gold? - Tell her you will send her an email query about your question and asked her to reply to that email. See whether she will reply in written form.

2) Now, look thru' your prospectus and see whether there is any thing on credit event or any trigger event and how much you could lose. Think about the risk:reward ratio. If for that x% in interest payable to you yearly, you will stand to lose potentially 100% of your principal. Would you continue with it? Or do you want to sleep soundly and take the 10-20% loss and treat it as a lesson learnt.

Whatever advice given regarding our money, we have to think and evaluate ourselves whether it is really the cause. DO NOT PLACE BLIND FAITH ON ANYONE.

Personally , for me, I dabble in structured products but it is used to express my views on the market. It's amazing that banks allowed investors to put all their life savings into structured products.

So, if you are the conservative type, your best solution is just to put it into FD (not what they called structured deposits). The next best would be a low-cost diversified index fund as suggested by Mr Tan.; October 12, 2008 4:14 PM
Parka said...: I've heard the old lady's interview on Youtube. It's sad.

It's not just money that's taken away. It's the time, in her case, 30 years that may be lost. It's someone's life.

It's not just money.; October 12, 2008 8:23 PM
WY said...: Hi parka,

do you have the Youtube's link ?

Hopefully more such interviews can be recorded (be it done by own or newspaper) and compiled.

Thx.; October 12, 2008 9:39 PM