11 Nov 2008
Two investors in Lehman Brothers derivatives who filed a case seeking refunds reached settlements with Wing Lung Bank yesterday, saying they will dismiss their suit after they receive compensation.
They were among the five investors who filed lawsuits on Thursday with the Small Claims Tribunal against Wing Lung Bank, Citic Ka Wah Bank and Mevas Bank. The cases are to be heard on December 29.
One of the investors, a 71-year-old surnamed Ting, said he was satisfied with the settlement, but refused to reveal details. He said his confidence in banks had been restored and that he would continue to use Wing Lung Bank’s services.
In 2004, Mr Ting invested HK$ 40,000 in Lehman Brotherslinked minibonds. He said the bank’s staff had misled him into thinking minibonds were like fixed deposits, and were backed by “sound and famous companies in the world”.
Meanwhile, other investors reached settlements with the Bank of China. Most of them were more than 65 years old and had invested tens of thousands of dollars in more than HK$1million worth of Lehman-related derivatives.
The Hong Kong Association of Banks’ taskforce on Lehman derivative products published full-page advertisements in several newspapers, restating that it would give priority to cases involving customers aged 65 or older.
“We will continue to file cases with the Small Claims Tribunal and District Courts,” said Democratic Party legislator Kam Nai-wai, who has been helping investors pursue their cases. The party will file up to 10 cases this week.
He said banks were too passive in reaching settlementsand legal action would speed up the process.
Democratic Sha Tin district councillor Michael Yung Ming-chau, who had assisted Mr Ting, said it would be a win-win situation for investors and banks if they could settle before facing each other in court. “ Banks shouldn’t deal with the cases only after they see [plaintiff’s] lawyers.”
- ► 2019 (1429)
- ► 2018 (1406)
- ► 2017 (1258)
- ► 2016 (828)
- ► 2015 (691)
- ► 2014 (144)
- ► 2013 (501)
- ► 2012 (1269)
- ► 2011 (1873)
- ► 2010 (2369)
- ► 2009 (1654)
11/09 - 11/16
- New swap counter party to replace Lehman Brothers
- God help the righteous
- High risk is not disclosed in Prospectus
- High risk of credit linked notes, inadequate retur...
- Retrenchment Loan
- Complexity of Credit Linked Notes
- Be careful if you wish to redeem your credit linke...
- Banker fill up complaint form, but did not disclos...
- Structured products linked to Lehman Brothers
- Why You Need to be at Hong Lim Park Tomorrow (15 N...
- Retrenchment and its impact on Singaporeans
- SCMP:Divine intervention in Legco debate
- Adequate saving for retirement
- Financial Advice for Young People
- Reuters: Financial crisis politically awakens Sing...
- Hear the voices of High Note 2 investors
- Open letter to chairman of DBS Bank
- Unexpected surge - 700,000 visitors to my blog
- Trustees act to terminate the swaps
- SCMP:Approval ratings of finance chiefs drop
- Rebuttal to "invest with your eyes open"
- SCMP:Legco probe best hope for minibond mess
- Morgan Stanley hotline for Pinnacle notes
- Accountabiliy, transparency and social justice
- Reply from MAS on the 3 petitions
- Letter to Prime Minister on Credit Linked Notes
- Speaker's Corner - 15 November 2008
- Sunday Times article on Petitions
- Call to the Government to be fair to the affected ...
- Business Times: Look at pricing structure, risk di...
- SCMP:Time to reconsider class action lawsuits
- SCMP:Two investors reach settlement with bank befo...
- SCMP:Legco likely to pass bill on minibond investi...
- New Paper: Structured Products: "What banks don't ...
- CBS Videos on derivatives, etc
- Obama's Speech at Election Night
- Did the RM explain "first to default" ?
- Sued for misleading investors
- Joseph Stiglitz
- Quality of financial advice and fact find
- Leadership styles
- Investigate the creators of the structured product...
- Decisions of FiDREC
- Investors should be aware about the risk: MM
- HK: Probe into minibonds bankers wins support
- Credit default of Pinnacle Notes Series 9
- Loss in the Singapore reserves
- Obama's Day
- Is this fair?
- SCMP:Bank admits substandard tactics
- SCMP:Minibonds meeting ends in recriminations
- Exchange currency in a bank - an analogy
- Rejection letter by DBS
- ▼ 11/09 - 11/16 (53)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)