Nov 10, 2008
Suit against Lehman, UBS seeks an order certifying it as a class-action.
LEHMAN Brothers Holdings Inc's Chief Executive Officer Richard Fuld and UBS AG's US brokerage were accused in a lawsuit of misleading investors who bought Lehman's 'principal protected notes' before its September bankruptcy.
The complaint, filed on Nov 6 in federal court in Manhattan, claims Mr Fuld and 10 other past and current Lehman directors deceived investors about the risks of buying notes that are now almost worthless, Bloomberg news reported on Monday.
The suit seeks unspecified damages and an order certifying it as a class-action, or group lawsuit, on behalf of other investors.
Sales documents for the securities 'contained untrue statements of material fact and omitted other material facts', according to the complaint filed by Girard Gibbs LLP in San Francisco.
Lehman didn't disclose that repayment of the debt might be threatened by 'exposure to losses from its real estate and mortgage portfolio', and UBS Financial Services should have 'diligently' investigated the disclosures before helping sell the notes, the complaint said.
Mr George Sard, a spokesman for Mr Fuld, didn't respond to a message seeking comment.
Hi Mr. Tan,
ReplyDeleteSingapore MM , Mr. Lee Kuan Yew said: “…if the authorities had handled the matter (financial products linked to collapsed investment bank Lehman Brothers) based on the law, the cases would be ‘closed’…..”
Let us see will this (Lehman Brother related) Case be closed so speedly and easily as Mr. Lee said?
By the way, can you forward this Report directly to Mr. Lee? It is very unlikely that he read this report posted in yr blog
Only if the authorities had handled the matter based on the law and carry out their duties diligently, there would not be so much anger, disappointment and all the FIs would have filed for Chapter 11 already.
ReplyDeleteIf MAS had done its duty by applying the laws and enforcing the laws this won't have happened.
ReplyDeleteThe laws were enacted sometime in 2000 and 8 years on they remained dead letters, unused, for show, and in fact sent wrong signal to the FIs and their reps that these laws are play play only.
Is there any volunteer lawyer step out to help the victim?
ReplyDeleteIt looks like the victim should take initiative for a group action by engaging a lawyer.
Do you still believe DBS? Do you still want to keep on waiting and wating?
Ask yourself, what can you do now?
I don't understand why Richard Fuld is entitled to about US280 million dollars of salary when the 120s year old company that he helmed collapsed. He should return the money to the investors.
ReplyDeleteI believe US has no qualms of sueing these banks because they are after all US banks. However if Singapore is to sue these US banks, maybe it would affect Singapore status as a financial hub. However, I think it would be good that the government take some action to show that it care for us Singaporeans.
ReplyDeleteWhy do I get the feeling that every tom, dick and harry just want to jump on the lehman bandwagon alleging mis-selling? Be fair. Everybody lost money in the financial tsunami, not just the structured products buyers.
ReplyDelete9.35pm,
ReplyDeletewonder you just woke up or too slow to understand the issue, eh.
that's because you have lost money in probably some stocks and shares and you are hoping that you are not alone!!!
ReplyDeleteSingapore is not US so cannot compare or learn what can be done in US can also apply to Singapore. Here MAS just suggests FIs what to do, FIs will follow, hence they compensate the "vulnerable". And MAS is under PAP gahmen, and the supreme PAP leader is LKY. Even at 85 years old, still need to be around to guide the "mee siam mai hum" son and team. In the US, where got such thing? And in the US where got opposition sued to bankruptcy?
ReplyDeleteJustOneSngh said.......
ReplyDeletewe are now in a Technical Recession and with all the unresloved issues in this Blog, we can be heading for a TKO or Tecbnical Knock Out.......who can help? only Divine Intervention!!!or go to NDP to hear the parade commander shout "KEPALA PU,,,SING!"
Fornt cover of minibond 5& 6 price statement in bold – ‘ this pricing statement must be read together with the prospectus.’
ReplyDeleteSince FI did not provide the prospectus , we deem the agreement as void & invalid . Significant mat info was not presented for informed decision making ….’MUST’.
Pinnacle & jubilee price statement doc has stronger statement .
Application form also has this point…..pls bite on it .
Unfortunately what L K Y said in the Straits Times today can only encourage the Fi to disregard our complaint of mis-selling.
ReplyDeletehttp://www.girardgibbs.com/PPN.asp?_kk=lehman%20minibonds&_kt=cc375c62-9e28-4b1c-93e8-97517560089a&gclid=CKWlmIbz6pYCFQwcegodHXCN_A
ReplyDeletePl.copy & paste link to read full article
Anonymous said...
ReplyDeleteUnfortunately what L K Y said in the Straits Times today can only encourage the Fi to disregard our complaint of mis-selling.
11:00 PM
IF it would make you or anyone feel any better.
It makes NO difference who said what then AND now.
10:24pm being emotional and not objective about the issue will not help your cause (although I think is totally futile).
ReplyDeleteI respect MM Lee. He does the right thing even at the expense of the populist vote.
ReplyDeleteAlthough We are well educated couple with clever children, I do not agree Mr MM Lee spoke openly that children of educated people will have a higer chance to have a honour degree. Although it is true somehow, as a leader, he should not encourage this kind of thinking. He should give poor people hope, should encourge people study hard to make their achievement regardless their family background. Every child has the chance to realize their dream.
ReplyDeleteI also do not agree that he spoke openly that foreigner should be kicked off first when Singapore ecnomic is down. Although it is fact somehow, where is moral of the socity? Shouldn't company make this decision based on their employee's performace but nationality? It hurted foreigner's passion to contribute to this country.
People are equal when they come to the world and equal when they leave the world.
As a leader, he should remember he is speaking for all groups but not only one group.
Regulator fails to regulate is FACT.
ReplyDeleteRegulation in place but no show is NO LAW.
Nat Bank joins lehman & MS bandwagon is RIGHT to the LAW.
Suitable products are sold to NOT SUITABLE people is FACT of LAW not suitable people fail to see with EYES OPEN.
So move on,....
Move on to where?.....
SAD, it goes without saying, but must move on....
Let's move on....
REMEMBER to OPEN your EYES when times come again U need to open your eyes.
LESSON learnt: Unusual time only U see the quality with your eyes.
Life is a journey and along the way there are many opportunities and everyone is born with equal opportunities so if one picks a wrong investment due to his or her fate and if things turn sour that the term UNLUCKY comes about on the hand one can be LUCKY by not being exposed to unproven or untested products! I know people who were pioneer investors with a leading Land-Banking firm here made hefty sums of money in their project exits and others who were critical and skeptical missed the opportunity and went for the minibonds and structured deposits that eventually got themselves burnt!
ReplyDeleteGreed is the downfall of men!
Likewise those who get chopped off from their jobs maybe unlucky but on the other hand, could be a Blessing too, depends on situation!
Overall the word FATE come play on our DESTINY.
To anon 9.30pm
ReplyDeleteThe crux of the matter is Fraud by the FIs in marketing these toxic products, ie. 'hanging sheep head but selling dog meat'. So if you can't get it, don't open your mouth and ramble nonsense.
"The crux of the matter is Fraud by the FIs in marketing these toxic products..."
ReplyDeleteThe crux of the matter is pple are upset about poor investment decisions made but themselves just when they aren't so certain and that, hey didnt turn out well and they are trying to find a way through to have someone listen them shout 'OF COS its NOT my fault!" but legitimately.