Tan Kin Lian's Blog: Reply from MAS on the 3 petitions

Wednesday, November 12, 2008

Reply from MAS on the 3 petitions

Dear Mr Tan,

I refer to your emails dated 7 November and 10 November to MAS, and your email to the Prime Minister dated 10 November.

MAS understands the anxiety that investors in structured notes are feeling. We have devoted substantial resources to looking into the issues, with teams of officers working on formal inquiries as well as on ensuring that there is a fair, serious and impartial resolution process for affected investors. Independent persons have also been appointed.

MAS takes feedback seriously, and reviews all feedback received. In deciding on the courses of action, we are guided by our regulatory approach and assessment of the situation. As MAS has to be fair and transparent to everyone, MAS has to communicate to all investors at the same time through public press statements. You would appreciate that MAS therefore cannot reply to particular groups of individuals or individuals writing to MAS on our intended course of action.

Our approach and our advice to investors are set out clearly in the various public comments and press statements. You may wish to refer to our earlier press statements dated 22 September, 10 October, 17 October and 20 October. We will continue to communicate with investors through public press statements when appropriate.

Dr. Andrew Khoo

REPLY

Dear Dr. Andrew Khoo

Can you indicate where your press statements can be located, and if they have addressed the points contained in the three petitions that were signed by a total of more than 2,300 people. If there are outstanding points that have not been addressed, can you reply if they will be specifically covered in future press releases?

The mode of communication adopted by MAS has added to the concern and anxiety of several thousand people. I suggest that MAS review its approach and be ready to engage in a dialogue with representative groups of the investors.

25 comments:

Anonymous said...: The way I see it.

"Singapore’s SM Goh Chok Tong has warned against over regulationof the financial system in light of the recent meltdown on Wall Street."

What he actually meant was MAS too much work, too little pay. Where got time to regulate. Current zero regulation is already too much for us already. Singaporeans standard of not enough regulation is too high for us. Don't bother us and create more job for us.

"He said the system must be flexible to allow ingenuity in creating new products, but agreed that more mechanisms need to be put in place to protect investors."

What he actually meant was MAS will support the banks and gives them a free hand to create more ingenious bombs to cheat investors. Like that then their share prices will go up. He agreed that more mechanisms need to be put in place. Currently none, but add another 1 or 2 ruling to appease the public first.
Protect investors? You must be joking. We will not benefit. They got eyes, ears and brains.
We only need kidney.
Protect bank? Err...ask temasek.

Juz for laugh<--disclaimer; November 12, 2008 9:50 AM
Anonymous said...: The reply is actually not replying!; November 12, 2008 10:17 AM
Anonymous said...: Actually the reply from MAS is one of a piece with all the replies from organizations like SBS, Powergas, Singtel etc. It repeats the same old tired cliches and lines. Somewhere there must exist a dictionary on meaningfully empty phrases that will fit all cituations.; November 12, 2008 10:43 AM
Anonymous said...: The reply tells you that MAS is still looking for a best answer to justify themselves for sleeping on the job. In the backyard the Harvard grad is researching the answer. The others are either here or there kaypoh on other people's business.; November 12, 2008 11:54 AM
Chew Boon Keng said...: I think you gave a good reply to Andrew Khoo who seems to be hiding behind the sarong of non-transparency.

There are equally good comments from this person who is called “anonymous”. Is it possible for one person to give so many words of wisdom? It would be great if this person is transparent on his/her identity too.

Chew Boon Keng; November 12, 2008 11:56 AM
Anonymous said...: It is just plain rude not to reply to even an individual. The problem with all these Drs and highly paid scholars is they spent more time writing letters than actually doing the work needed to fix any problems. Giving such a feeble excuse is insulting to Singaporeans. Now GST to help the poor suddenly sounds so much better.; November 12, 2008 11:56 AM
Anonymous said...: Hi all
Does it mean that they'll wash their hands (always give us the standard reply) n let investors to fight for their own rights with the big FI, no justice how can we small fly do it. sigh! pls all wake up dont trust the FI anymore boycott their product take your money n keep it at home (at your own risk).; November 12, 2008 11:58 AM
Anonymous said...: MAS is the one that allows the sales of such products to retail customers.

Therefore, if it cracks down hard on the banks, they will be slapping its own face. MAS is caught between the devil and the deep blue sea.

This should teach the officers at MAS not to accept everything they are told as the gospel truth.... especially when those preaching are the Masters of the Universe. Be brave and shed your inferiority complex when confronting these product structurers.

Regards
Ex Masters of the Universe; November 12, 2008 1:06 PM
Anonymous said...: Why would MAS listen when they don't even want to hear you out? Approach the banks directly. Don't bother us. Wasn't that what MAS said?; November 12, 2008 1:16 PM
Anonymous said...: "Anonymous Anonymous said...

U can get either of 2 replies

One. Thank you for your feedback.

Two. Thank you very mauch for your generous feedback once again.

2:46 PM"; November 12, 2008 1:46 PM
Anonymous said...: By god, this is the most polite and well put reply ever..

To tell the recipient to buzz off!; November 12, 2008 2:08 PM
Anonymous said...: A lengthy reply from Dr Khoo that said nothing. It takes a doctorate to do it.; November 12, 2008 3:25 PM
Anonymous said...: "Anonymous Anonymous said...

A lengthy reply from Dr Khoo that said nothing. It takes a doctorate to do it.

3:25 PM"

Pls dont BELITTLE doctorate ok *wink*; November 12, 2008 3:45 PM
Anonymous said...: Dr Khoo actually said quite a fair bit.... but he is Dr "Khoo" ( in Cantonese means "guess"!)...so just let you people guess what he is trying to say lah.... people PHD leh. Must think harder...; November 12, 2008 5:51 PM
GOHCT said...: IN A move to protect Lehman Minibond investors, the trustee HSBC Institutional Trust Services has taken action to terminate the swaps for series 1 to 8 notes in the programme, said the Monetary Authority of Singapore (MAS) on Wednesday.

'This removes the risk of credit events in the underlying securities and helps to preserve the value of the underlying collateral,' said MAS in a statement.

'This action is not necessary for series 9 and 10 as the underlying securities for these notes are corporate bonds and have no swaps.'

MAS said it has been informed of the steps taken by HSBC 'in view of the current market conditions'.

The statement said the trustee has appointed three partners from PricewaterhouseCoopers

Singapore (PwC) as receivers for series 5 to 8 which have defaulted since the relevant coupon payments were not made by the due dates.

The other series would also default if the relevant coupon payments are not received by the due dates and the relevant grace periods have lapsed.

The trustee would then appoint the three PwC partners as receivers for these series.

The receivers' role is to take control of the assets of these notes and to work closely with the trustee towards a solution which is in the best interests of noteholders, said MAS.

The trustee and the receivers have assured MAS that they have not ruled out any restructuring proposals received from interested parties and that these will be explored for all series of the notes.

To provide noteholders with an independent opinion on the options that best serve their interests, MAS has appointed Deloitte & Touche Corporate Finance Pte Ltd (DTCF) as an independent financial adviser on the Lehman Minibond notes programme.

MAS cautioned that restructuring the Minibond notes programme is a complex exercise which entails the agreement of several parties and resolution of challenging legal issues.

It would also need noteholders' approval.

'These steps will take time. The receivers would also have to take into account the risks to noteholders, including the continued credit and market risk to the underlying collateral,' said MAS.

'Hence, whether a viable restructuring proposal will materialise depends on several factors which are not within the control of the trustee and the receivers.'

MAS added that it understands that noteholders are anxious to know what they should do and what to expect next.

'At the moment, there is no action required on their part. MAS and the trustee will continue to keep noteholders updated on all developments including any options for them to consider,' it advised.

'MAS has asked the trustee to work towards providing noteholders with an update on whether restructuring is still a viable option by the end of the month at the latest.'

Mr Heng Swee Keat, Managing Director, MAS, said: 'MAS has been in close consultation with the trustee and receivers.'

'We believe that these are reasonable and appropriate steps for the trustee to take to protect the interests of noteholders given current market conditions.'

He added that the appointment of the independent financial adviser is also an important step to ensure that noteholders' interests are served'.

Mr Heng added: 'Our work on other fronts, on the formal inquiries and in seeing to the serious and impartial process of handling investors' complaints, is progressing. We will provide updates at the relevant juncture.'; November 12, 2008 7:37 PM
Anonymous said...: comments from ming in CNA forum :

Indeed, one can only hope that MAS will be fair and transparent. To date, there has been almost no information released on the investors who have been affected.
Two months after the crisis breaks and we still do not have an aggregate picture of the investors who bought these credit linked notes. Simple statistics like how many were Singaporeans versus non-Singaporeans, age/income profile and so on have not been made available. If it is MAS's expressed intentions to be transparent then be transparent and tell the public what we need to know.; November 12, 2008 9:20 PM
Anonymous said...: no one seems to be taking Mr Tan and his thousands of supporters seriously...; November 12, 2008 10:08 PM
Anonymous said...: "Two months after the crisis breaks and we still do not have an aggregate picture of the investors who bought these credit linked notes."

Statistics merge and divide.

The only question is When's Which.; November 12, 2008 10:29 PM
Anonymous said...: "Anonymous Anonymous said...

no one seems to be taking Mr Tan and his thousands of supporters seriously...

10:08 PM"

Wow I love your statement.

Its like..like stating the OBVIOUS.; November 12, 2008 11:29 PM
Anonymous said...: Singaporeans are so tame and docile. How to be treated seriously?

Out of 10,000, only 1000 bothered to exibit their unhappinesss. How to be treated seriously?

In Singapore, only the affected feels anything, the rest just watch and laugh, how to be treated seriously?

Selfish people and a selfish nation. Doomed.; November 13, 2008 6:02 AM
Donaldson Tan said...: The result is obvious: law suit; November 13, 2008 7:12 AM
Anonymous said...: This call stonewalling. If you stonewall (delay long enough) a number of things happen: people get tired, they lose their anger as they become depressed, they recalculate whether it is worth throwing good money after bad, they are prepared to accept minimal returns, they give up.; November 13, 2008 10:25 AM
Anonymous said...: The result is law suit?

The result is no result.; November 13, 2008 12:33 PM
Anonymous said...: I believe there will some result, if not 700000 who read the blog might support other party who didn't put money in lehman brothers like some of our town councils did.; November 13, 2008 11:22 PM
Anonymous said...: "Anonymous Anonymous said...

I believe there will some result, if not 700000 who read the blog might support other party who didn't put money in lehman brothers like some of our town councils did.

11:22 PM"

You should read up on Statistics

Then You might have a better idea how WRONG you are.; November 14, 2008 11:30 PM