Hi Kin Lian,
I'm a former lawyer from Singapore now residing in Brussels. I have closely followed the activities with regards to the Lehman Brothers saga in Singapore. I have attached an article from a news site in Belgium with regards to this matter to demonstrate how this matter is being handled over here. Keep up the good work.
Video link:
http://www.deredactie.be/cm/de.redactie.english/mediatheek_en/1.425647
Sat 29/11/08
Angry clients of Citibank and Deutsche Bank demonstrated in Brussels this afternoon. They first marched to the headquarters of Deutsche Bank in Brussels, and then to Citibank. The demonstrators are demanding compensation for the money they lost due to the bankruptcy of the American Lehman Brothers.
According to the Citibank and Deutsche Bank clients they had not been aware that there was a risk for their money as well when Lehman Brothers went bust. Apparently Citibank and Deutsche bank sold investments to their clients that were managed by Lehman Brothers. The clients say they were not informed of the risk. When the American bank went bankrupt, Belgian clients also lost their money. They want Deutsche Bank and Citibank to reimburse their loss in full. The pressure on Deutsche Bank and Citibank is rising especially because a number of other banks who had sold their clients Lehman Brothers investments such as Fortis, Ethias and Swiss Life have guaranteed the capital of their clients. In the meantime Deutsche Bank has said that there will be compensation for clients whose portfolios were composed largely of investments with Lehman Brothers.
A delegation of the demonstrators was received by Economy Minister Vincent Van Quickenborne. His inspection team also suspects deceit. Minister Van Quixkznborne: "Misleading advertising violates legislation on trade practices. The question is whether the people, when they bought these products, if they were properly informed about the possible risks.
There was talk of capital guarantee- 100% and it then it turned out that
1) it was a product that was not from the same bank they bought it from; and
2) afterwards it also turned out to be a bank that was vulnerable to problems."
15 comments:
Whatever happen in any other location or country in the world does not concern what happen here, or will happen here. These are separate matters, at best for reference.
Second, the case mentioned there seems to state that a Central or Primary Bank or FI, or perhaps a couple of such Top Tier entities feel pressures for compensation from OTHER BANKS. Becos these other banks sold 'toxic' products and are facing pressures from their clients.
This will contrast sharply from the cases here (Asia), as the FIs here are directly responsible to the end clients. The single and sole primary entity they can hold responsible and accountable to them in turn seems to be that very Mother Entity which as mentioned in the other discussions, is mired in bankruptcry proceedings - Lehmen.
If the above understanding is correct, then what the Europe consumers are fortunate to have is for their banks to have another layer of instituitions for them to sue for compensation on their behalf. There is no such safety net for the Asian counterparts.
Meaning every cent compensated here will have to come out of the local FIs pockets.
And since their 'creditors' are ordinary day folks with limited means, coupled with a less than er 'associative' system of authoritative proceedings, all the more they dont see any urgent need to relinguish THEIR POCKETS.
There, intercontinental puzzle solved.
Am really glad to see this message of lawyer. You have given Tan and the investors great support and encouragement.
I hope you will be able to give advices here.
many thanks
LPC
European ministers are elected and paid to protect people. SOme place, ministers add salt on your wound and slam your face.
Cannot demo, cannot marching, can gather at corner of the park and listen to talks.
Open our eyes, bunch of FXXX american so call bankers are cooking up with local bankers some alread resigned and left for NEW YORK, and yet all RMs and FIs are bearing the Shiiit from the creative products, where got logic. It is time the GOVT stand up and nail the original sellers of this TOXIC CDOS. afterall, Old power had gone, BUSH is nobody now. OBAMA is a sensible man, nailing the crook and jail them in JURONG to teach them a lesson not cheat in Singapore.
Otherwise, everyone in SEA just puik puik...
Thanks to Wayangnologist's encouragement and advice for investors in Asia to use same approach as those happening in other nations. He is sending a message to read between his lines.
Gong
Mr Tan, wanted to share this passage i read from a book called "America's Great Depression" with you and readers of your blog.. Note the word used by Rothbard to describe fractional-reserve banking ie FRADULENT...
"...Instead of preventing inflation by prohibiting fractional-reserve banking as fradulent, governments have uniformly moved in the opposite direction, and have step-by-step removed free-market checks to the bank credit expansion, at the same time putting themselves in a position to direct the inflation...."
Murray Rothbard 1963
Gong 9:33 PM
Glad you got my meaning, Gong.
If other countries can resolve these in a satisfactory manner, then this will add pressure on Singapore to do the same. This will be good for the investors.
Unless of course PAP still think ignoring the victims is still OK because they (PAP) have absolute control by default. Even if the voices grow louder, the rallies bigger but these will make no difference to their political and institutional power. LKY knows best how to deal with such things and hence still a valuable asset despite advanced age of 85 years and a weakening heart.
As far as the sale of credit linked note is concerned, MAS is in limbo.
Why? Why? Why?
Investors please give some thoughts to it. Do some detective thinking.
What are rumours may turn out to be the true.
Quote
"Indian Home Minister Shivraj Patil has submitted his resignation taking “moral responsibility” for the Mumbai attacks that killed nearly 200 people."
The FIs may not hv strong "legal obligation", but surely they hv "moral resp" to compensate the investors. Even '3rd world" countries know what is "morally right" things to do.
our ministers don't resign because they don't responsible. They push the blame to others
To Anonymous 7.33am
Good metaphor and well said!
I am sure. very very sure that the PAP will lost many votes for the next election.
LPC
Even George Bush is getting apologetic now.
Bush: 'I'm sorry' the economic crisis is occurring...
President George W. Bush expressed remorse that the global financial crisis has cost jobs and harmed retirement accounts and said he'll back more government intervention if needed to ease the recession.
In Singapore, why are "finance terrorists" tolerated when Singaporeans are told to be on the lookout for terrorists??? Total Defence???
Latest news from Hong Kong..
Tribunal takes on Lehman
Wednesday, December 03, 2008
Southern District Councillor Andrew Fung Wai-kwong and 10 investors in the failed Lehman-related derivatives yesterday filed complaints at the Small Claims Tribunal.
The investors, aged between 45 and 70, had bought the derivatives from DBS (Hong Kong), Bank of China (Hong Kong), Bank of Communications, Bank of East Asia, Wing Hang Bank and Nanyang Commercial Bank.
Fung said the Democratic Party, of which he is a member, has received around 8,000 complaints, with the highest investment being HK$100 million.
So far, 150 cases involving sums ranging from HK$40,000 to HK$80,000 are being handled by the Small Claims Tribunal, while a further 50 are slated for mediation.
Fung said eight more cases are being prepared for the High Court, though investors might withdraw them if the banks agree to negotiate. "Some banks would rather mediate with those who have small investments than go to court," Fung said.
BEATRICE SIU
"...has received around 8,000 complaints, with the highest investment being HK$100 million."
This is madness
Someone made an investment of HK$100 million and he has to join the queue to lodge a complaint!?
That says a lot either of the brains behind that 100 million or of the possibility of getting back that same 100 million via ANY OTHER CHANNEL ATTEMPTED
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