Fox Yi Hu
Holders of Lehman Brothers minibonds in Hong Kong have been cheered by news that one in four Singaporean complainants will receive a full refund from banks which fraudulently sold them the products.
They hope the Hong Kong government will be pressured to speed up the handling of their complaints about sales of similar investment products backed by bankrupt US bank Lehman Brothers.
The Monetary Authority of Singapore yesterday said financial institutions would make full or partial settlement to 58 per cent of complainants. It said in a statement that 25 per cent of complainants would get all their money back and 33 per cent some of their money.
“Almost all elderly investors with little income, little formal education and little investment experience have been offered full or partial settlement,” the statement said.
By Wednesday, 10 financial institutions that sold DBS High Notes 5, Lehman Minibond programme notes and Merrill Lynch Jubilee Series 3 LinkEarner notes had received 5,381 complaints, according to the Singaporean central bank.
It said Lehman minibond programme notes worth S$508 million (HK$2.63 billion) had been issued. Of the total issue, S$375 million was sold to about 8,000 retail investors through nine distributors.
Hong Kong resident Chan Hongyuk, 63, who spent about HK$1.2 million buying minibonds through Bank of China (Hong Kong), said he hoped the local government would follow suit. “It seems the Singaporean government is willing to help the victims but our government ignored us,” Mr Chan said. “ Now I feel a bit more encouraged. I thought I might lose all the investment.”
Housewife Ms Yan, who bought minibonds through Citic Ka Wah Bank, said she hoped the Hong Kong government would act more decisively after Singapore had set an example.
“We took to the streets a few times but the government seemed to be dragging its feet,” said Ms Yan, who is in her 40s. “ If the Singaporean government has assumed its responsibility and looked into problematic sales, the Hong Kong government should do something.”
Ng Siu-shin, who bought minibonds through four banks, said Singapore’s quicker pace had set Hong Kong an example. “ It shows Hong Kong how another government is working,” he said.
Minibonds are not corporate bonds, but consist of high-risk creditlinked derivatives. They are marketed as a proxy investment in well-known companies.
- ► 2013 (304)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
01/11 - 01/18
- SCMP:Singapore ruling on minibonds bring HK hope
- Difficulties faced by migrant workers
- Blog will hit 1 million visitors by 23 Feb 2009
- Complaint on mis-selling of CLN
- Queen's Counsel opinion
- Full refund of $100,000
- Thought for the day - who will speak the words tha...
- MAS statement: Compensation for credit linked note...
- Mis-selling of structured products
- Learn about insurance
- Investor wants to sue the relationship manager
- "Pinnacle Action Group" formed to work on a possib...
- Going to extremes to find a job
- Value and character
- How to identity a bubble
- A new way to do business - by conference call
- Thought for the day - Injustice
- Invest in assets at deflated prices
- Beware of bubbles
- Insurance that worsen crunch
- SCMP:Regulators' reports raise more questions than...
- Part Time Work
- TABS - Taxi Automated Booking Service (8202 8866)
- Hilarious sayings of George W Bush
- SCMP:Two women sue bank over minibond losses
- Yield during the Great Depression of the 1930s
- ▼ 01/11 - 01/18 (26)
- ► 2008 (2105)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)