Friday, July 24, 2009

Pinnacle Notes - many series in trouble

Hi Kin Lian,
Please post the latest valuation (July24)of the following series of Pinnacles Notes. The situation is now very critical for holders of these notes.

Series 9 & 10 are already kaput, 1 & 3 may be gone too, and 2,6 & 7 are almost worthless at 0.3% or less(they were at 2% a fortnight ago!) and Series 5 at 1.8%, barely alive and hanging by their skin.

Only remaining 4 Series are fairly safe at this time.

Yet MAS unlike its HK counterpart is expecting each and every investor to fight it out on a case-by-case basis with his FI distributor when it has already found the FIs guilty of near-systemic or firm-wide errors and faults. MAS is indeed prescribing a slow and painful death for the investors who are the victims in toiling through processes of complaints, FIDREC and/or legal actions, while the guilty are merely given what is effectively an enforced but cost-free and painless holiday.

In the light of the latest empathetic resolution led by HK's authority, I think the Petition ought to updated appropriately to add more punch.



Tan Kin Lian said...

Dear SB
You can draft your "more punch" in an addendum to the Petition. I will include the addendum when submitting the Petition.

Anonymous said...

Pinnacle note even has Reference Entities -- Temasek, Sing Telecom, republic of Sing. Isn't this trying to lure investors ? Put that in the petition if possible. What kind of shit MAS approved. Don't tell me if someone use your name you never bother to find out ?What is Temasek doing ?

A Singaporean said...

From the Pinnacle Notes website, one can confirm that Series 1 is gone - a Mandatory Redemption Event has occurred. No news about Series 3 though. It seems that all series have invested into a particular entity called Syncora Guarantee and were hit by a credit event in that entity.

Anonymous said...

Pinnacle Note holders should have another petition to ask MAS investigate Morgan Stanly. THere are so many misleading information given and they hide so many critical information to mislead both distributors and investors.

THe training material given by Morgan Stanly to distributor should be investigated.

Anonymous said...

SB is right to say the next wave of toxic products defaulting will be the many Pinnacle Series. Failing not because of known Reference entities but those hidden "underlying assets" not disclosed to inventors. Just when MAS thought it has put out the fire with mininbonds & HN5, Another flare up and harder to say the FI did their full disclosure.

Anonymous said...

Dear Kin Lian,
The "more punch" can be done by updating the following paragraph in your Petition draft to reflect the actual terms of the latest resolution in HK and the total sum which the FIs there will be coughing out. These facts will scream out loud. Your team can do this straightforward update alone, easily and more conveniently:

"“We read from the news reports that the financial institutions in Hong Kong, who have sold similar products to the investors in Hong Kong under similar circumstances, are discussing with the regulators in Hong Kong to pay an immediate compensation of 60% of the invested sums and 40% of the proceeds of the investment on its maturity. We understand that this offer would be made to all investors, as it was recognised that the misrepresentation of the product was systemic and had affected all investors equally. The amounts involved in Hong Kong are several times larger than in Singapore."

More than on the petition, I have this to say to all the Pinnacle Notes holders out there. No petition is a substitute if aggrieved investors do not take personal ownership of the complaint process. In fact this petition alone will most likely suffer the same fate as those before it and be ignored by MAS. The “boycott” by the media on this petition as lamented by Tan Kin Lian is an omen of the disappointment to come. Sadly, the voices from Pinnacle Notes holders, unlike the Minibond holders, are overall rather subdued. Perhaps some are contemplating legal actions but nothing formal so far has immerged. But avenues to FIDREC and to the courts are not mutually exclusive and hold no reason for inaction. The number of individual formal complaints to the FIs and FIDREC seem deafeningly low. This gives the FIs and MAS the excuse to take it that PN holders are generally UNAGGRIEVED. You can see that in the statistics given out by MAS.

Perhaps many are bidding their time for better times and MAS’s empathy. Both are not forthcoming and looking at the rapid deterioration in valuation, the day of the reckoning is at the door-step for most. Formal complaints may not yield desirable results. But if there are enough swallows, it may make a summer. So join me and the few who have gone to FIDREC. Every aggrieved PN holder must stand out and be counted – BETTER LATE THAN NEVER. Together, this and the Petition, will better the chance for the summer we all hope for. HK investors have shown the way with their determination and individual commitment (thanks to fearless street protests) with good results. We here too must push, but in our own way and within lawful means.


Tan Kin Lian said...

I am not at liberty to change the wordings of the main Petition which has eben signed by over 500 people.

You have to draft an addendum to the Petition.

Unknown said...

I am one of the aggrieved holder of PN 6. You have mentioned all the PN holder must join in the Petition, how do I do that ?

Thank you

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