Wednesday, July 22, 2009

SCMP:Investors want full refund, not 70pc

22 July 2009
Scores of minibond investors who lost their money when Lehman Brothers went bankrupt are holding out for full compensation of their principal sum and insist a proposed pay-off of up to 70 per cent is unacceptable.

A Ms Siu, 52, who declined to give her full name, purchased HK$6 million worth of Lehman minibonds from Bank of China (Hong Kong) and flatly rejected the proposal.

"This is not all right," she said. "I will continue to fight [for a full refund]."

She did not rule out accepting a 60 per cent pay-off and then taking the bank to court to recoup the rest of her investment. But she was not optimistic.

"Why can't the banks follow what Sun Hung Kai [Financial] did? How come the banks are not able to do something securities firms could?" she said.

Ms Siu said she planned to join about 100 investors at a protest at the Bank of China headquarters on Friday.

Bank of China sold most of the Lehman-linked minibonds in Hong Kong and many of the other banks are expected to follow whatever settlement terms are agreed by it. But a settlement deal offering just 60 to 70 per cent compensation is expected to be a tough sell to angry investors, who were emboldened in their fight by the 100 per cent pay-off arrangement agreed between more than 300 investors and brokerages Sun Hung Kai Financial and KGI Asia.

Democrat legislator Kam Nai-wai said whether the buy-back proposal was adopted would largely hinge on how many investors agreed to it. It was hard to predict how well received the settlement deal would be among the investors. Mr Kam said he planned to get their feedback on Sunday.

"As for the banks, if the proposed settlement cannot save them from trouble [from compensation seekers], it was not wise to take it," he said.

The Securities and Futures Commission should also explain why banks could escape from full responsibility while some securities firms could not, Mr Kam said.


Anonymous said...

Gosh I will be soooo happy to receive 50%. The Hong Kongers don't know how lucky they are

hongjun said...

Both parties should bear responsibilities. Up to 70 per cent is really good enough.

Anonymous said...

"""Why can't the banks follow what Sun Hung Kai [Financial] did? How come the banks are not able to do something securities firms could?" she said.""

Why can't spore brokers following HK's excellent example. Even if not 100%, 20% for every body also good. Why so unfair.

Why HK borkers can get 100%, yet we can't even get 10%, 20% or 50%?????
Why so unfair?

Anonymous said...

Reason why Singapore investors not compensated? No political pressure, our Minister Lim Hng Kiang proudly proclaims. In HK, alot of political pressure to compensate investors, hence the 70% pay back. Our Singapore government is generous and magnanimous to the banks, that's why Singapore investors get peanuts. Investors and their family members who have borne huge losses must remember to be generous with their votes in the coming general election.

Anonymous said...

let me say this to hong kong investors: you greedy people,your government has fought for you tooth and nail, and won you a 70% refund, and you are still not happy.

look at us in singapore, our government does not believe us, does not support us, and take every chance they get to portray us as "investing with their eyes wide open." compared with us, you guys are so lucky, so lucky.

Anonymous said...

It is not hongkongers are greedy, it is singpore gahmen not capable or unwilling to help her people.

Anonymous said...

"High risk High return"
"Ban FIs have already tarnish their reputation"
"our method is fair and no political pressure"

What rubbish. Pay millions in salary and deliver a golden Peanut.

Anonymous said...

Yes. The Hong Kongers don't know how lucky they are to have a government that dare to fight for for them. In Singapore, we would celebrate if we get 60% to 70% even though we still end up losing a lot of money.

It is a really telling episode about our government. Now we know.

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