The regulator in USA look after the interest of consumers. I hope that the regulator in Singapore can follow the same example. Tan Kin Lian
http://www.nytimes.com/2008/12/12/business/12auctions.html?ref=business
December 12, 2008
By THE ASSOCIATED PRESS
WASHINGTON (AP) — Two banking giants, Citigroup and UBS, agreed on Thursday to buy back nearly $30 billion in risky auction-rate securities that regulators said the banks had marketed to customers as safe.
The Securities and Exchange Commission formally approved the settlements with the two banks after preliminary deals that were reached in August.
Securities regulators in Texas and New York also announced details of final agreements with the banks.
Tens of thousands of the banks’ customers bought the auction-rate securities before the $330 billion market for them froze in mid-February, the S.E.C. said in announcing the final accords.
The new settlements were the largest return of customer money in the agency’s history and all the investors will be made whole, the chairman of the S.E.C., Christopher Cox, said in a statement.
Citigroup and UBS of Switzerland neither admitted nor denied wrongdoing under the settlements.
Citigroup agreed to buy back about $7 billion in the securities from affected customers, while UBS’s repurchase totaled $22.7 billion.
The settlements require federal court approval. The banks agreed to refrain from future violations of securities laws.
The SEC has ruled there is violation of the laws by selling assets as safe
ReplyDeletewhich are not.What about MAS?
MAS - Do the RIGHT THING !!!
ReplyDeleteMAS has clearly not been on top of things as a regulator. This is now the time to do what its duty entails and to resolve the issue quickly. The issue is really not that complicated.
ReplyDeleteMAS wait and see what others do, then they decide. But don't be too optimistic. They may not follow what others do. And what can we do if they don't? Class action lawsuit, I suppose.
ReplyDeleteI understand from Taiwanese TV programme that those mini-bonds bought after Sept 1 will be refunded 100%, is this true how Taiwan monetary authority handled it?
ReplyDeleteI have bought structured products which were mis-represented to me using my entire hard-earned savings. Now, I have failed to seek recourse with my FI and I am at my wits' end! Can MAS not hear our desperate cries for justice?
ReplyDeleteObviously there is a lot of similiarities between the auction-rated securities and those structured products marketed here. Both are risky financial products marketed as low risk products to induce customers to purchase them. What is more appalling is that those purchasers of auction-rated securities are much more knowledgable than the local purchasers of credit linked products in terms of financial knowledge of the securities marketed and yet the SEC deemed it fit that customers should be fully compensated.
ReplyDeleteWe saluted the Securities and
Exchange Commission and the Securities regulators in Texas and New York on their civility consciousness.
Yes, MAS should step forward more positively. The ordinary investors like us will not be able to fully appreciate and understand complicated products like Minibond and the regulator must step in to safeguard their country men to prevent such products being sold in the market to the ordinary citizens.
ReplyDeleteIf we sue our banks/distributors here,can our lawyers use this ruling as a point to our advantage?
ReplyDeleteHi Mr. Tan,
ReplyDeleteMaybe there can be a poll on Mr. Tan for President?
Then how about the Merrill Lynch Jubilee Series 3 Notes ?
ReplyDeleteAny News.
In comparison, the amount here, even to be fully settled, is small, a drop in the ocean, but is this pill too bitter for the FIs to swallow? Certainly yes, as the FIs here are over-protected, spoilt. They need a big stick, not persuasion. Wait for further direction from Mr. Tan KL, wait for legal opinion from the experts.
ReplyDeleteWhat can we say???
ReplyDeleteSad!!!!
It's an Asian thing, the Authority cannot "lose face" so they cannot admit mistake. So it's a waiting game, wait for Banks to admit and pay up. In Hokkien, they say you will have to wait for "Tan Ku Ku", my brother to show up.
ReplyDeleteTan Chin Ku.
the reason for these buybacks is becos that is one of primary conditions they HAD to agree to if they are to be granted EVEN MORE bridging loans (or maybe other favorable sweeteners) to tie over the lull market
ReplyDeleteTHINK "BANKER"
Which one would let go of that Dollar note in his right hand
UNLESS hes getting a Hundred Dollar note in his left!?
Wayangnologist said...
ReplyDeletethe reason for these buybacks is becos that is one of primary conditions they HAD to agree to if they are to be granted EVEN MORE bridging loans (or maybe other favorable sweeteners) to tie over the lull market
Hey Wayang, UBS is not an american bank. Would US taxpayers allow their money to bail out UBS? Are you a member of any political party?
why does everyone start to any'o'how attach a political agenda once they run out of better explanation they CANT think of, is it they are using it as a mask they are NOT thinking hard enough or as a excuse they are STILL NOT thinking hard enough
ReplyDeletethe Banker might not need to be ANYTHING
in fact, the Right Hand doling out the Dollar note might not need to be THAT Banker's
Neither, the Left getting the Hundred
As long as the son or daughter or even distance cousin fulfill SOME charity, the Parent gets the cash. Comprehende?
Unlike the Americans, MAS just keep shunning its responsibility on the matter. Why should individual investor pursue the claim with FI? It should be in the interest of MAS to be fully involved as clearly they have not been a disappointing failure in this case. How I wish if our former President Ong would be still around! Definitely we need change and Mr. Tan is our hope now!
ReplyDeleteHi
ReplyDeleteCould someone kindly share if this securities issued by Citigroup / UBS similar to CLN here?
Regards
JC
"Why should individual investor pursue the claim with FI?"
ReplyDeleteTo be very very honest, some 'authorities' never HAD ANY REAL responsibility to begin with, if you catch what i mean.
From that basis alone, you can project the outcome by yourself isnt it