9 July 2009
Eight independent lawmakers, led by Regina Ip Lau Suk-yee, yesterday met representatives of the Hong Kong Association of Banks in an attempt to resolve the Lehman minibonds saga.
The meeting was mainly focused on the settlement offer by 16 distributor banks that was revealed by The Standard last week, which has won the support of many lawmakers, sources said.
The meeting between the HKAB and the lawmakers went smoothly and the banks were close to concluding an offer, said Ip, who is also the founder of the Savantas Policy Institute, a think-tank.
Ip said the eight lawmakers in her delegation were speaking on behalf of 3,000 Lehman minibond investors in Hong Kong and they hope to resolve the issue of compensation as soon as possible.
" The investors have been seeking help from us, and I have received 1,000 cases," she said.
Other lawmakers in Ip's delegation included Lam Tai-fai, Jeffrey Lam Kin- fung, Samson Tam Wai-ho, Leung Ka- lau, Paul Chan Mo-po, Chan Kin-por and Philip Wong Yu-hong, sources said.
The lawmakers cited the report issued by the Monetary Authority of Singapore on Tuesday, which said up to 75 percent of the investors in the city state may be able get some of their money back as they had filed complaints. "They said the MAS report showed only a 32.2 percent repay ratio, which is much lower than the current proposal [from 16 Hong Kong distributor banks] which calls for paying back up to 70 percent," a banking source said.
Lawmakers were said to support the banks' proposal as it was "more reasonable" and a better offer when compared with the MAS deal, according to sources familiar with the situation. Last week, representatives from the banks approached the Securities and Futures Commission, presenting a formal proposal to settle the issue concerning compensation for investors who had bought minibonds linked to the collapsed US financial firm Lehman Brothers.
The proposal said banks would offer an average of 60 percent of principal invested or 70 percent to those investors aged over 65. They also agreed to top up the difference if collateral is sold at higher prices in the future.
Meanwhile, Democratic Party legislator Kam Nai-wai suggested Hong Kong follow the Singapore model.
Kam yesterday said he would meet the financial secretary to discuss the matter.
"According to the Singapore model, up to 95 percent of investors could get their money," Kam said, offering data different from that quoted by the HKAB.
- ► 2013 (299)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
07/05 - 07/12
- Idling ships clog up Singapore shores
- Rebuttals to editorial in Straits Times
- Issues not addressed by MAS investigation findings...
- Law Suit on DBS High Notes
- Coverage of Lehman cases in Hong Kong
- MySudoku Contest in MyPaper
- A fair solution to the toxic product crisis
- Part Time Work Portal
- Name the Shape Contest
- TKL Intelligence Quiz Contest
- The Standard:Ip supports banks' offer in minibond ...
- Relevance of Animal Farm
- Tyranny and liberty
- Cheyenne does Shape Quiz (2)
- SCMP:SFC does not need to complete all minibond in...
- SCMP:Chief keeps quiet over calls for his resignat...
- A Doctor by Choice, a Businessman by Necessity
- Ban on selling structured notes
- Let your views be heard
- Gathering at Speaker's Corner, 22 Aug at 5 pm
- Section 27 of Financial Adviser's Act
- A fair compensation
- Follow up action on MAS investigation report
- The Standard:Illegal Lehman protest targets Tsang ...
- Singapore bars 10 firms from selling structured no...
- MAS Investigation Findings
- 100 fun and information personality quizzes
- Simplify Internet Banking
- Prevent Mis-selling of Financial Products
- Funds Transfer
- Diverse Views
- A poor return on savings in life insurance
- A note of encouragement
- No-fault motor insurance
- Are we over-reacting to Influence A (H1N1)
- The hidden ugly side of Singapore
- Consumer Finance Protection Agency
- SCMP:Lehman investments recouped
- FISCA Research: Interest Rates on Savings Accounts...
- Cheyenne does the Shape Quiz (T Puzzle)
- Allow lawyers to act on contingency fee
- Automated car
- Gathering in Speaker's Corner in August (4)
- ▼ 07/05 - 07/12 (43)
- ► 2008 (2105)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)