Tan Kin Lian's Blog: Investigation of US banks by New York AG

Friday, May 14, 2010

Investigation of US banks by New York AG

Read this article.

My comment.
This investigation has relevance to the investors of the Mini-bond, Pinnacle notes and Jubilee notes. If the banks had acted fraudulently in getting the rating agencies to give a misleading rating, there is the possibility of recovering the loss in US courts.

I respect the AG of New Yrok. At the time that the alleged wrongdoings were happening, people were not aware. When they now know the facts, with the benefit of hindsight, they are willing to take the banks to court and let the court decide if there were any wrongdoing. The banks are likely to agree to some form of settlement and to make some compensation to the parties that were wronged.

I hope that our authority in Singapore will also consider similar action on behalf of the small investors that were hurt by these wrong doings.

13 comments:

Anonymous said...: Our dear MAS don't seems to be interested at all.; May 14, 2010 1:49 PM
Divali said...: Latest from the NYT:

"With Banks Under Fire, Some Expect Settlement"

http://dealbook.blogs.nytimes.com/2010/05/14/with-banks-under-fire-some-expect-settlement/; May 14, 2010 2:04 PM
Anonymous said...: MAS does not have enough man power to handle cases. Remember, MAS asked to interview investors and decide on their behalf.; May 14, 2010 3:01 PM
Anonymous said...: One basic duty of the governments is to ensure that their hard working and thrifty citizens could retire comfortably.

But with “Caveat Emptor”, It seem that financial institutions no longer need to answer for the quality (whether bad or toxic) of the financial products which they sold or designed.

With so many bad or toxic products (Minibonds, Pinnacle notes, High notes, Jubilee notes, insurance products, CDOs, CDS, ….) around, being hard working and thrifty is not enough, your whole life’s saving could be easily cheated by those “talents” (financial experts and legal experts) who are responsible for designing complex financial products.; May 14, 2010 3:07 PM
Anonymous said...: MAS dare not to be intersted, as it exposes the flaws in their regulatory system.; May 14, 2010 3:35 PM
Anonymous said...: please join us to sure Morgan Stanly to prove that the "investor walk in with eyes oopen" is wrong.; May 14, 2010 3:45 PM
Parka said...: Show me how MAS is going to get paid, and I will show you how they behave.; May 14, 2010 5:20 PM
Divali said...: LuckyTan's latest:

"Current SEC investigation into investment banks...."

http://singaporemind.blogspot.com/2010/05/current-sec-investigation-into.html; May 14, 2010 6:50 PM
Anonymous said...: """The Pinnacle Notes sold to Singaporeans was a product by Morgan Stanley currently under investigation by the SEC.""""
(From Lucky Tan)

Hope some positive results can come out of it.; May 14, 2010 8:11 PM
Anonymous said...: All these Notes: DBS HN5, Morgan Stanley's Pinnacle Notes, Merril Lynch's Jubilee Notes, are all packed with these CDO as underlying assets & are being investigated in USA, Why is MAS still not investigating? Aren't we world class government and always set good example to other countries who has no integrity?; May 14, 2010 9:47 PM
Anonymous said...: MAS Expert approve things that they never understand. They will get their butt kick in coming election; May 14, 2010 10:10 PM
Anonymous said...: MAS: Must Act, Sir?

The decision to act does not lies in MAS as a whole but the chairman and inturn the other two Ms.

So what if the MAS MD recommended to act? He need clearance from chairman, who inturn needs the support of the Govt.

Once they put on the business hats, then nothing will happen as the US Banksters and Sgp DBS are the Untouchable...; May 15, 2010 8:06 AM
Anonymous said...: A NMP has asked a question after Goldman Sach has been investigated by SEC. Anyone knows the actual question asked in Parliament and when is the next parliamentary sitting? Please share information.; May 15, 2010 1:42 PM