Monday, November 10, 2008

Investigate the creators of the structured products?

Hi Mr. Tan
I see that the International Panel of MAS include the CEOs of Morgan Stanley and Merrill Lynch, who are responsible for creating the Pinnacle Notes and the Jubilee Notes. DBS, which is subsidary of Temasek, creates the High Notes.

Is this the reason why MAS is reluctant to go after these investment banks that created these toxic products?

REPLY
We still do not know if MAS is investing the investment banks that created these structured products. So far, we have not heard of any news from this angle.

The only news is that the distributors are encouraged by the MAS to compensate the "vulnerable" investors in full, and to seek a "fair settlement" with the other investors. It appears that the claims of the non-vulnerable investors are being rejected on the grounds that there were "no mis-selling".
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3 comments:

Anonymous said...

As someone had commented before, it is not so straightforward for MAS to just "do something" for all the victims. If it is, they would have already done it fast.

The issues may be very complex and we folks will not be able to see or be told of the whole picture. And as such, at the end of the day may just have to bear with the losses. Just like bear with the high cost of living, huge numbers of FTs, miserable deposit rates etc.

November 10, 2008 1:43 PM
Anonymous said...

Conflict of interest.You can see they are trying to shift the blame to investors indirectly. Like the the 5% return for 100% risk.

November 10, 2008 2:32 PM
Anonymous said...

Common sense question to be brought down by common sense answer


Would YOU suka suka let strangers investigate your accounts and income streams

See, thats your answer right now.

November 10, 2008 2:43 PM

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