Monday, November 10, 2008

HK: Probe into minibonds bankers wins support

Bonnie ChenandAdele Wong
Monday, November 10, 2008

The chances of bankers being summoned to explain the Lehman Brothers minibond fiasco grew stronger yesterday after the largest party in the Legislative Council indicated support for such a motion.

The move comes despite a warning by Secretary for Financial Services and the Treasury Ceajer Chan Ka-keung that the concern raised by foreign banks over a legislative inquiry may have an adverse effect on the business environment.
Chan said he believes the banks involved would probably buy back the minibonds next month.

The motion to summon bankers can only be passed if it gets majority support from lawmakers representing both the geographical and functional constituencies.

Thirteen of the functional constituency lawmakers are expected to support the motion but they will still need at least three votes from the Democratic Alliance for the Betterment and Progress of Hong Kong.

DAB chairman Tam Yiu-chung said the party will decide tomorrow whether a Legco investigation will affect the time of compensation and Hong Kong's status as an international financial center.

But another DAB member, Wong Tin-kwong representing the import and export sector, said he was inclined to support the motion.

"If the issue is to be investigated, it has to be tackled in the right direction," he said.

Only three former Liberal Party members and David Li Kwok-po of the finance sector have said they will vote against the motion. However, the pan-democrats said Li should not vote since he is chairman of the Bank of East Asia.

Civic party chairwoman Audrey Eu Yuet-mee said an open investigation by Legco would be fair to all sides. A source said the government is trying to get the DAB and some functional constituency independent legislators to vote against the motion.


Anonymous said...

Honk for the Honkies.

Hongkies lead the way.

Let's hope their parly interviews the bankers.

If the HK parly finds that banks did things wrong there, the same practices areis likely to occur here.

Giving weight to the petitions here to investigate the practices of the distributors here.

As I said, "Honk for the Hongkies". They raising the bar for a responsible global financial centre.

Holding banks to account.

Anonymous said...

The (planned) HK move may have an adverse effect on the business environment.

That is ‘good news’ for MAS!

Singapore will be elected ‘World No1 business friendly country‘ !

Anonymous said...

HK is really showing how to do "the right thing". It is better to be HK investors than SGP investors.

Anonymous said...

Dear MAS.

Please do "the right thing". Show the world that Singapore will always do "the right thing" in our bid to overtake HK as the financial hub.

Enough of doing "the wrong thing" or not "doing any thing". Show everyone that our financial industry values integrity and punish all wrong doers.

Anonymous said...

Ask a question

If doing the 'right' thing will cause you your bonus, hey even your rice bowl

would YOU do it?

i think YOUR answer will apply universally. sort of?

Anonymous said...

now i hope i am a hk citizen, not sgp

Anonymous said...

We are a group of Pinnacle investors who have brought the credit link products from OCBC Securities .

We understand from your AIS dept (last Fri) that there are some Pinnacle Series have deteriorated significantly in values .

Here is the tall order request .

IF we decide to sell now at x% market price , can OSPL give us the assurance & guarantee that in the event of any future successful legal case won by investors , can OSPL award us the balance (100%-x%) .

Time is very short & critical now . We received news from AIS that there may be some Pinnacle series possibly going default soon .

We have loss nearly 100% of our blood , sweat & tear savings . We hope to re-coup some $ now . Of course , will need the individual investor agreement.

If the investors were not successful in the possible legal tussle , OSPL will win goodwill & applause from the public for doing the RIGHT THING ; also pay less .

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