SINGAPORE, July 10 (Reuters) - More than 200 customers have sued Singapore's DBS Bank, a unit of DBS Group Holdings , in a bid to recover investment losses of around S$17 million ($11.6 million) arising from the collapse of Lehman Brothers, the Straits Times reported on Friday.
Siraj Omar, a director at Premier Law, told Reuters his firm had filed a claim in a Singapore court on behalf of 204 investors but declined to discuss the case. The investors had purchased a callable basket of credit-linked notes, called High Notes 5, from DBS.
A DBS spokeswoman confirmed receipt of the claim, saying the suit was without merit and that DBS planned to defend the lawsuit.
Well done! the HN5 group leadres and members.
ReplyDeleteWhat happen to our Minibond groups?
Still talking no actions?
The Minibond group leaders should learn from the HN5 group leaders how to organise and move ahead.
John
I salute DBS Highnotes 5 investors for suing DBS Bank. This is a shiny example for other class action groups to follow.
ReplyDeleteJust use section 27 of the FAA to prove the RMs failed to put investors' interest first. and then go on to show mis-selling and misrepresntation by proving the RMs' recommendation was not of reasonable basis against the investors financial circumstances, needs and risk appetite.
ReplyDeleteAs employees or representatives of the FIs the FIs are liable for the misconduct of their salespeople.
Documents needed are fact finding forms, the circumstantial evidences and the examination and cross exam of the witnesses and subpeona former RMs to take the stand.
The Watchman
Can these 200 be a test case? If they won, can others also follow suit and also win?
ReplyDeleteBut if they lose, then ... Very sad!
I am not invested in HN5, but fully support the investors. DBS need to compensate and apologise, before I trust them again
ReplyDeleteHopefuuly the lawsuit will encourage DBS to settle. And at the same time set an example to others group to bring FIs to court.
ReplyDeleteThe statement from DBS after MAS's report shows that they have not learnt the lesson yet. No rule will stop the same mistake to happen again unless people in charge put the intesrest of nation and people well being first.
DBS has been the meanest when it comes to compensation as reflected in their measly $7mil paid. They have set aside 10times more than this amount so if they really care about reputational risk of DBS, they can settle out of court and save a lot of bad taste with customers ever after.
ReplyDeleteMy best wishes to the small people on the street who now stand up to challenge the mighty Bank.
Lest we forget, HN5 was developed and marketed by DBS. It is, probably, easier to be file a suit.
ReplyDeleteOther products like minibond have many different parties in the development and sales.
DBS has set aside $80M to include compensation for investors in Hong Kong as well.
ReplyDeleteIt looks like Hong Kong investors will get back 60% to 70% of their capital. The bulk of DBS compensation will be in Hong Kong. Good for investors in HK but bad for HN5 investors in S'pore.
if DBS hk compensates 60-70% to minibond investors there, then i see they hv no reason not to compensate high notes investors here, as both pdts are of similar nature.
ReplyDeleteThe statistics in the MAS report (Annex 02) just reflects badly on DBS : full or partial percent for DBS is only 22.8 against 95.5 for HLF. What a shame !!!
ReplyDeletetemasekwithlove
Hello here are comments from REX.
ReplyDeleteWhether statistics are "good" or "bad".. it is in the eyes of the beholder. Yes DBS statistics show that they compensate very little. If you are a toxic product victim, it's very bad statistics. However, the same statistics could appear to be good news or perhaps neutral, if you are:
a. A shareholder of DBS;
b. A well paid executive and also did not purchase toxic products;
c. Ang Mo multinational company thinking of setting up a business in Singapore;
d. ? any more.
Taken as a whole, and in view that there are just only several hundred victims, who are themselves not very well co-ordinated or united, the government just ignore this issue. As we know the tone already pre-set from Day 1 when a high ranking official said "you went with your eyes open". So i can imagine this governemtn will do nothing more. For what? The extra goodwill of the small group of victims (small compared to electorate size) is not going to make any difference to the super comfortable lifestyle of the executives.
PAP still gonna win anyway, i dont believe the number of victims in the toxic prodcuts has sufficient critical mass effect to throw out the government. It is just a drop in the ocean lah.
"Move on", their favourite quote. There is no compassion. Everything is calculated on political, economic and strategic level and on a big-picture basis, in this country, our homeland.
It is very very very sad.
REX
DBS dream is to become an internatiional bank. From this HN5 fiasco, DBS has demonstrated it is still far behind in crisis and customer handling, independent thinking which are eseential requirements of a prestiguos international bank.
ReplyDeleteAsk any DBS's HN5 customer, compensated or not, they have bad impression about how they were treated by DBS. Their investigations are like black box operation. Investors presented their cases and they have no idea how their complaints were rejected. Their staffs attitude towards customer is less than desire.
What HN5 investors want is amicable resolution. In this aspect, DBS exhibits "Ah Long Corposration" mentality. DBS used force of law (DBS's law) to stone wall investors. MAS report indicated that there are many question marks in DBS's RMs in handling the sale of HN5 and yet DBS keep mum about it. If this happened in The US, Europe or Hong Kong, the banks would automatically compensate all customers fully. DBS did not exhibit characteristic of a major bank by owning up the problem he created, instead DBS leave it to their investors to prove that DBS has done wrong. DBS continue to evade HN5 investors whatever way he can, as the same time , the resentment of his customers towards DBS continue to grow.
Rex,
ReplyDeleteWhy so sad? From day 1 when Singapore became independent we could see the leaders have this kind of personality. It is not based on moral ethics but cold calculating facts on how Singapore can maximise its advantage. Why else would Singapore first worked with the pro left wing workers, win the election, then purge them and so on? When you have a cold calculating brain, the body follows, and for decades Singaporeans continue to support this kind of personality, so why so sad, why so surprised, why so unhappy?
Even though High Notes customers are a small drop in the sea of Singapore electorate, the thinking Singaporeans will be worried about re-electing this type of government that stand on the sidelines and say "you went in with your eyes opened". Furthermore, this same government also loss billions of the national reserves with their eyes opened wide!
ReplyDeleteAfter MAS investigation, it gives us a tinkle of hope that the suit against DBS will be successful. I will never comprehend that DBS could eventually win the battle 100% and it will bring gross injustice to the investors if this happens!
ReplyDeleteIn any decent country, it'll be the regulators who're suing the FIs, not the investors.
ReplyDeleteThere's a big systemic problem that needs to be solved. Even if all the insurance agents, RMs and financial advisers disappear tonight, many more will appear to replace them tomorrow. The problem is still there. (Read job fair news. Many people are desperate for jobs)
Regulators give FIs the impression that what they do is ok. Similarly the FIs give their sales force the same impression.
上梁不正下梁歪
Hello Anonymous @July 11 3:20pm,
ReplyDeleteRex comments as follows.
To be fair to the PAP, it is not correct to say that from "Day 1 when Singapore became independent.. the leaders have a bad personality." Those days were very different. It was a fight with communists (Red China politics under Mao in those days were not the same as today!), it was a struggle to see if singapore could survive independent of British Rule and Malayan Federation. Lee Kuan Yew was very convinced that Singapore needed Malaya as he thought Singapore will die without strong base, and when Tungku expelled Singapore in 1965, LKY was really in panic because he had no confidence singapore could survive alone given all its well known problems. Fortunately he had very good kaki like Goh Keng Swee, Hon Sui Sen and so on. In those days whatever He and his team did was very admirable and extremely practical, and we all owe it to him and his great leadership in those days, LIKE IT OR NOT!!
I am sad because after achieving more and more success with each passing year, the incumbents grew greedier and greedier on the one hand, and kiasu-er and kiasu-er on the other, this is my personal opinion. They are so scared that they will lose power. Actually if they do more sensible things, more people will vote for them, as Singaporeans are mostly very reasonable and forgiving so long as they observe humility. There is a weird "afraid to admit mistake" mentality in the entire civil service!
For the life of me i cannot understand why they have to be paid so many times higher than the President of USA. Actually having acquired riches, it is time to forge a more compassionate society as a national virtue, not just push the citizens to extreme edges based on macro-economic model.
"What does it profit a man if he gain the whole world and lose his own soul?" This is what is happening. Many Singapore leaders have no soul in my private opinion. I puke when i see the youtube video of a famous leader saying "when i seen my cpf account i feel so rich".. the image of it HAUNTS me to this day!!!!!!
When we are already successful and the external threats are lessened, it would do well for the leaders of a country to learn to be humble and more compassionate instead of being proud, haughty, arrogant and sometimes insensitive to the weaker ones.
I am very very sad because of that great change. Today the spirit of Singaporeans is much worse off than in 1960's and 70's despite so much advances in technology and national wealth. As national day approaches i can only weakly say "Matilah Singapura" for the common folk like you and I. "MAJUlah Singapore (progress onward singapore)" only befits those who already driving Mercedes and in good position in government or business, well connected and well paid.
How sad.
REX
Rex who wrote "For the life of me i cannot understand why they have to be paid so many times higher than the President of USA..".
ReplyDeleteMany citizens asked the same question too. And many replied this is what they called legalised corruption. And they also said who else in the world would put their family in line for the throne except in 'DEMOCRATIC' Sillypore !
REX,
ReplyDeleteI share your sentiments. That's why I'm trying to be a quitter soon...
If I can't beat them, don't want to join them, the only way out is to quit!
Hi 10:14AM
ReplyDeleteThis is our homeland, how can you quit. You are alway treated as 2nd Class citizens in other countries. When time comes, we can change and improve our homeland together. I believe many Singaporeans are looking forward to REFORM our country.
Yes, we may be "1st class citizens" here but what's the point of being 1st class citizens when our PAP govt did not treat us like 1st class?
ReplyDeleteFrankly being a "1st class male citizen" here doesn't make me feel proud. In fact I felt like it's more a liability than an asset.
S'pore is not ready for a change yet, we are not like M'sia which had a change in its last GE'08 and M'sia is not even a "1st class country".
If nobody steps out from his comfort zone or eliminates his "fear factor", how to reform and how to change? Our only great reformist had already left us for good in Sep'08, the rest of them either self exile, bankrupt or in IMH/prison.
Even S'pore has reformed or changed but it is too small a country to survive in long term, that's why to quit for a bigger and stronger country is a better permanent solution.
We can't choose where we are born but we can choose where we want to live, work, retire and die? It's very sad that we have to end up like our non-Malays across the causeway whom left M'sia in exodus for a different reason but on a same basis.
We have to make our first step now though it may be painful before it's too late so that our future generations will not blame us for why we didn't choose to quit when we had a choice/chance.
My dear homeland - S'pore which I have born, bred and raised here, I'll kiss you goodbye soon and I really hope that it's going to be very very soon...