Dear Mr. Tan,
Our hopes are dashed by the most recent announcement on the minibond issue. I guess most of the investors are devastated now.
Unfortunately, there is no way out now except for the class action. I believe that is the most effective and most direct way in approaching this issue. We consumers need to know the truth, whatever the outcome is. Please lead us into this!
RZ
REPLY
Please read my blog about the progress of the class action. It will take some time to get organised. I expect to give a recommendation towards end January on the course of action to take.
http://tankinlian.blogspot.com/2008/12/legal-action-against-issuers-and.html
I think we should start organising now.Get a small committee going - and we begin from there.
ReplyDeleteI fully supported this course of action as it is the only one with a chance.
ReplyDeleteWe have prelim talks with Leonard Loo , one of the lawyers mentioned in your earlier entries. As at 2 weeks ago, the there are more than 200 seeking his help for a class action. More are welcome and they can contact LL as soon as possible for the final push.
ReplyDeleteHis contacts : 6557 2422
Email : lehmanlawyersgmail.com
About mini bond, It has two major flaw. Please let me know if you agree.
ReplyDelete1. Omission of material fact. That is, the mini bond distributor (i.e. retail banks) and the Issue Prospectus never explained what is CDO, and what is the Synthetic CDO (many Prospectus mentioned that the collateral is actually Synthetic CDO) .
For a product like mini bond / or credit-linked notes, it has no really underly assets, other than CDO collateral. The banks (i.e. sellers) and the prospectus owe it to the investors to explain what is the CDO, what kind of underlying securities consists of CDOs. What is the Synthetic CDO, what consists of Synthetic CDO. Then need to disclose material fact about CDO or Synthetic CDO, and disclose the related risk of CDO or Synthetic CDO.
In summary, both banks (as sellers) and prospectus omitted the material fact of CDO / Synthetic CDO, and omitted the material risk of the CDO / Synthetic CDO.
2. Collateral.
Now when banks trying to buy back the Collateral, legal issues happens as per notice from HSBC USA as Trustee.
The question are:
- how can banks sell a notes that they do not have access to the notes' collateral? have they done reasonable diligence prior to the
selling of the products?
- how much did banks know about the collateral of the notes/mini bond? they seems not awaring the fact that they don't have access to the collateral as their wish. what happened now is the proof.
I can be contacted at hkVictims@live.com.
When all the banks say no refund, the invester will start to take legal action.
ReplyDelete"Blogger Johnson said...
ReplyDeleteWhen all the banks say no refund, the invester will start to take legal action.
9:39 AM"
Thats why i said
The FIs are looking over each other of THEIR shoulders and will take THEIR time to keep everyone informed about ANYTHING
by that, I am NOT saying authorities would.
by that, I am just saying I am NOT saying any involving authorities would.