Wednesday, December 03, 2008

SCMP:Lehman investors turn to US government

http://www.pressdisplay.com/pressdisplay/showlink.aspx?bookmarkid=Q4YPBJJ055D7&linkid=dedc89da-260c-411d-85be-9ca8bc4b31e3&pdaffid=8HM4kDzWViwfc7AqkYlqIQ%3d%3d

3 December 2008
Paggie Leung

About 50 investors who bought Lehman Brothers-related products through Citibank marched to the American consulate yesterday to request an investigation into alleged mis-selling by the American bank.

The investors, who lost money after Lehman collapsed, petitioned the consulate, asking the American government to investigate Citibank's sales procedures.

"The US government recently injected so much money into Citi and has become the bank's key shareholder. Therefore, it should look into the matter," said Hui Shun-ngai, a representative of the group. The American government last week guaranteed US$306 billion of Citigroup's troubled assets and extended it US$20 billion in cash.

"The US government must also inquire into Citibank's authorised representatives responsible for the incident, including the tolerance of Citibank's mis-selling practices and lack of governance resulting in financial losses to Citibank's victims," the petition said.

Mr Hui said each protester had bought at least HK$500,000 in Lehman Brothers credit-linked derivatives from Citibank and they had not been informed of the high risk.

Meanwhile, 10 more investors filed lawsuits with the Small Claims Tribunal against six banks yesterday: Bank of China, Bank of Communications, Bank of East Asia, DBS, Wing Hang and Nanyang Commercial Bank. Their cases will be heard on January 29.

6 comments:

Unknown said...

now by some odd angle, they drag in US Gov

i am wondering how far this will stretch


the bigger issue is will how far this will stretch affect how much would be done


?

Anonymous said...

With Obama as president, they are more likely to listn to ordinary people's voice, and understand their needs better.

Anonymous said...

nail down the culprits whom had designed, packaged and export all these TOXIC products.

Jail them. and for such large scale criminal offences, Obama should do somethings.

ELSE we all , the whole world will BOYCOTT US products, EVRYTHING make is USA, we won't buy! won't eat, won't drink, as long as it carries USA make products.

But I can leave home without Microsoft OS>

Unknown said...

Why singapore Small Claims Tribunal only can handle 20k and below. How about those invester who invest more than 50k, where can they go to?

Chan J C said...

I also believe Mr. Obama will be a good listener to their people's problem.

And only 50 investor so far? I don't think so.. This is only the beginning.

Unknown said...

"Blogger Johnson said...

Why singapore Small Claims Tribunal only can handle 20k and below. How about those invester who invest more than 50k, where can they go to?

9:34 AM"



A Certain Financial Dispute Resolution Entity of course


and if nothing still works AFTER Small Claim and AFTER that Dispute Resolution or that its above 50k...well, theres still 'Luck'

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