Tan Kin Lian's Blog: Bank RM has courage and integrity

Wednesday, December 17, 2008

Bank RM has courage and integrity

FOR TOP PRIORITY ATTENTION

A RM of a bank called me. He is willing to come forward to sign a statement that he has been giving the wrong information about the credit-linked notes to the bank customers, due to his ignorance. He will be contacting other RMs to come forward and make a similar statement.

He told me that his bank had put pressure on him by stating that he would be held personally responsible to compensate the customers, if he admitted to giving the wrong information. He said that, when he sold the notes to the customers, he was not aware about the actual risks of the notes, due to the complexity of the structure and the poor training given to the RMs.

I told this RM that the bank does not have the right to hold him financially responsible for the honest mistake, especially as most of the other RMs were also poorly trained about these notes. It would be wrong for the bank to expect the RMs to tell a lie now to cover up for the mistakes.

I will arrange for these RMs to get legal advice and to make a statutory declaration about the actual statements and assurances that they gave to the customers about the notes.

I wish to call other RMs to step foward and be ready to make this statement. Please act honestly and with courage, and do what is right and fair. If you are willing to make this statement, send an e-mail to kinlian@gmail.com. I will get a large group of RMs to make this statement, so that you will not be standing alone.

35 comments:

Anonymous said...: this looks like a big break through! if more RMs from different FIs will also come forward, we will have them by the bxxxs. And MAS cannot any longer be the proverbial ostrich with its head in the ground not bothering what is happening around them!; December 17, 2008 10:18 PM
Unknown said...: "A RM of a bank called me. He is willing to come forward to sign a statement that he has been giving the wrong information about the credit-linked notes to the bank customers, due to his ignorance. He will be contacting other RMs to come forward and make a similar statement."

This is THE WHISTLE BLOWER that i beene banging on.

NOW THE GLOVES COME OFF!!!! GO GO GO

***lets hope theres more, please note

1. please keep this person identity absolutely top secret!
2. please dont pay this person a single cent!
3. please tell him/her NOT to resign if he/she hadnt done so; December 17, 2008 10:26 PM
symmetrix said...: Besides the SD from the RMs, we should ask these RMs whether they are prepared to testify in court as witnesses for the prosecution? In return, can we suggest some form of immunity for them?; December 17, 2008 10:46 PM
Anonymous said...: I applaud the RM for coming forward to give evidence against this malpractice. It's the blind (RMs)leading the blind (customers) and the banks is the only one with 'wide open eyes' being aware of such toxic products which will benefit no one but themselves! Mr Tan, perhaps you can update us how many RMs have already contacted you... this will definitely send jitters down...to the FIs.; December 17, 2008 11:15 PM
Anonymous said...: This is an important development. The statements from the RMs will finally clear the air about what really goes on in the FIs. The way the FIs try to shift the blame to the RMs and to cover up the fraud is simply despicable. The FIs and MAS must be taken to task for failing in their basic duties.

It is a sharp constrast between how MAS conducts itself in the credit-link note debacle and the SEC, in the aftermath of the Madoff fraud.; December 17, 2008 11:29 PM
Anonymous said...: Waa. At last there is a groundbreaking turn of events in favour of the victims and Mr Tan taking the lead.

Light at the end of the tunnel!!!; December 17, 2008 11:45 PM
Chan J C said...: This is indeed a brave move of this RM from the FI regardless of the outcome of his/her move.

I have sent this link to other RMs for their awareness.

I know that with this posting, lots of people will have this catch-22 situation in mind:-

the cost of RM's career in FI in Singapore VS personal integrity; December 18, 2008 12:00 AM
Anonymous said...: WE must ensure and protect his interest and other RMs' who are willing to come forward to testify against the FIs.; December 18, 2008 12:11 AM
Anonymous said...: This whistle blower has probably been laid off (i.e. DBS Bank) and now has an axe to grind. I can 100% guarantee you that the RM came from that bank. Want to bet with me?; December 18, 2008 12:12 AM
Parka said...: It's really brave of the RM. At least he's doing what he thinks is right.

Just look at the banks, even until now, they are still protecting themselves by telling their employees that they are personally responsible for compensating the customers. This is ridiculous because they are mis-using their knowledge on the law against their own employees. Where the hell is the morality of the top management?

For this RM who is reading. Don't worry. The contract signed with customers are between the bank and the customer, not the RM personally. That's why when people sue, they don't sue individuals, they sue entities.

Do take note that there might be company laws governing the release of internal information though.

Again, I express thanks for speaking up.

Thank you.; December 18, 2008 12:42 AM
Anonymous said...: Finally at last, some sense of justice is going to prevail. Finally, the foreign CEOs are going to realise that Singapore is not as devoid of talent as their overswelled heads are led to believe. Finally, the local arrowana is going to nip the butt of these piranhas for a change.; December 18, 2008 1:36 AM
Unknown said...: "In return, can we suggest some form of immunity for them?"

Thats why i suggested keeping the entire identity thing under wraps

This IS Asia we talking about. We ALL know theres NO such thing as I-M-M-U-N-I-T-Y.

Thats the REAL Urban Legend!

As for "Light at the end of the tunnel!!!"

Lets all hope this fellow does not back out last min because of cold feet, coercion, or worst, bought out!

I mean if as said, he was retrenched or somewhow terminated and in turn offered a princely sum to shut the *** up, thats really ... and the irony is we CANT pay him. its not just 'not enough', but NOT A SINGLE CENT to preserve the Integrity of his statements - which is all thats left to the Whistle Blower.; December 18, 2008 2:52 AM
Singapore Kopitiam - Voices of Singaporeans said...: Hi Mr Tan:

If more RMs would come forward, the class action would be a sure win.

Please put up a petition for more RMs to sign up, so that you have more supports.

The strategy now is to go for class action, rather than waiting for MAS to act, which may never happen.

The technicalities appear to be:

(1) The RMs were given the wrong information and training by the FIs;

(2) The RMs passed on the wrong information to the investors;

(3) The RMs had been pressurized by the FIs to cover up their wrong-doings;

(4) Because of point (1), the RMs made the wrong assessments of the risk profiles of the investors;

(5) The respective prospectus did not make the full disclosure related to the CDSs and CDOs to enable investors to make informed decisions;

(6) The advertisements of the structured products were misleading;

(7) Because of points (1), (2), (5) and (6), the investors were mis-sold the structured products.

Finally, please pay for the RMs' statutory declarations first; the investors will reimburse you late.

Regards,
Victor Sun
Singapore Kopitiam - Voices of Singaporeans
http://forums.delphiforums.com/sunkopitiam; December 18, 2008 6:13 AM
Anonymous said...: I think all RMs need to know that at the end of the day, their banks are not going to protect their (RMs) interests. All the banks will think of is their baseline. With this kind of philosophy, no wonder they can sell this kind of crappy financial instrument to the public! To te RMs who is willing to come forward, I salute you.; December 18, 2008 6:19 AM
Anonymous said...: This is indeed a positive development! Should evidence be unearthed that our FIs have contravened any regulatory provisions, MAS should whip the big stick & force FIs to pay full compensation for mis-selling, mis-representation, swindle, etc.; December 18, 2008 7:17 AM
Anonymous said...: I applaud the RMs who step forward to do the right thing.

I think the key point lies in absolving the RMs being held personally responsible to compensate the customers.

As far I know whistle blowers are normally protected. We need some legal advice here about this point to encourage more RMs to step forward.; December 18, 2008 7:31 AM
Anonymous said...: If we can gather, say 15-20 people buying from the same RM/advier. We then discuss with the RM/adviser together. If the RM/adviser is willing to sign some kind of Declarartion or written statement that he/she had provided the wrong info, that wld be ideal.
Our chances of success will be much higher.; December 18, 2008 7:40 AM
Anonymous said...: 100% return of the principle is a MUST.

Since RMs from different FIs have come forward.

And MAS cannot any longer be the proverbial ostrich with its head in the ground not bothering what is happening around them!; December 18, 2008 7:44 AM
Anonymous said...: My RM did same thing. Told the Strait TIme report the fact, told OCBC securities what happened past since he is no more working in OCBC.

But what happened?

Nothing!

Who win the case?

Nobody!; December 18, 2008 8:40 AM
Anonymous said...: Mr Tan
Thank you for putting in so much effort and time to help everyone!!

chew; December 18, 2008 8:47 AM
Anonymous said...: Anonymous 8:40AM
Pls inform your RM to contact Mr TanKL so that the necessary action could be taken.; December 18, 2008 10:10 AM
Unknown said...: "Finally, please pay for the RMs' statutory declarations first; the investors will reimburse you late."

i disagreed with this somewhat, even though this might seems offensive at first without further understanding.

The VERY idea of Statutory Declaration is the Integrity of its nature, of what its reporting. DECLARING.

Paying for it, even in advance, would open up the risk of allowing the OPPOSITION to have a go at distorting, even skewing that Integrity which is all important.

Thats why I warned very early on.

DO NOT PAY THE WHISTLE BLOWER A SINGLE CENT. Not even cab fare. No, no reimbursement.

Everything must come from that party's Personal Moral wallet.; December 18, 2008 10:52 AM
Anonymous said...: Wayangnologist said...
"DO NOT PAY THE WHISTLE BLOWER A SINGLE CENT. Not even cab fare. No, no reimbursement.

Everything must come from that party's Personal Moral wallet."

Finally!

Something that I can agree on with Wayangnologist. Lol

Good development, Mr Tan.

Hope not to hear anymore of this in public so as not to grab too much attention to our poor RM with integrity. Just hope you'll continue to quietly & effieciently search out more RMs willing to come forward. ;)

All the best!; December 18, 2008 11:22 AM
Anonymous said...: Actually the Strait Times reportor already inform MAS the facts the RM told him, they are not trained well at the beginning. But the problem is the RM do not want to disclose his name and I understand that is the most he can do. MAS do not want to believe anonymous comment.; December 18, 2008 11:29 AM
Anonymous said...: This is a great breakthrough but there needs to be a critical mass of similar whistleblowers to add weight and credence. Suggest Mr. Tan develop a legal support process with one or a panel of lawyers to take statements from those who are willing to come forward and who will be comforted and assured of confidentiality and protection. Publicise the contact info of these lawyers.

Then, investors can help to canvas for more whistle blowers to come forward by talking to their RMs. Agree with the reader who cautioned against providing money or benefits to these people to make statements to maintain the integrity and honesty perception of the process.; December 18, 2008 11:55 AM
Anonymous said...: Mr Tan, the corresponding investor groups will be most willing to pay for the SD fee, just let us know.

Zhong; December 18, 2008 12:03 PM
Anonymous said...: Yes. It is a time for all the RMs to come out of the blue for the conscience and digity otherwise the guilt of RM will never be washed away, only to let the real culprit and mastermind scott-free. For decades, the gov with their bullying tactics and GLC are only capable of intimidating the "little people" and shifting the blame to them when the former make "honest mistake".

RM,
ask yourself. When you make millions for the bank, did the bank reward millions to yoy ? Now, when the bank shift all the accountibility, mistake and responsbility to you unjustly, why should you just silently accept it ? Our society has been deteriorated by the greed and apathy of our coffers, and if you have any sense as human, please do the right thing and expose them. A good karma bestow you a good future, but if you insist on coverup for the bank, you only receive bad karma and at end of day, you not only losing your job, dignity and trust but your friends and respect as well.; December 18, 2008 12:35 PM
Anonymous said...: RM,
if you value your job and your future, do the right thing before the gov send the final nail to your profession and integrity.

Come January when the gov says that the matter will be resolved, I have no single doubt that the gov will put major blame onto RM for mis-representation and mis-selling, and not the bank, after all our gov is pro-business and they are the major stakeholders and beneficial for the banks. If you do nothing before the final verdict, you are just driving a nail to the coffin because you will not be respected and trusted anymore.
Redeem your injustice by coming forward and expose them before the culprit happily get away scott-free. If you think you get away, think thrice, that the gov will just be happily asking the RM to compensate their customer. This is a gov you can trust any more, isn't this know by now ? So why put blind trust on the gov, and doing nothing to help yourself ?

If you want to proof that you not guilty of mislead and misrepresent the customer and want to bring justice to your customer to which you sell the toxic product, then do the right by coming forward to testify against bank. YOur customers will forgive you if you do that, failing to do this simple thing will give you bad karma that you have to take for the rest of your life.; December 18, 2008 12:45 PM
Anonymous said...: yes, don't pay anything lest it will be interpretated as bribe and all evidences by the RMs will be negated as null and void and not admissable in court.be careful; December 18, 2008 1:06 PM
Anonymous said...: MAS should investigate the training provided by the bank to their RM; December 18, 2008 2:12 PM
Anonymous said...: MAS should conduct an impromptu test for all RMs to find out how much they really know about the products they sell. The results of the test will be revealling.; December 18, 2008 2:56 PM
Anonymous said...: Since MAS is pro-FIs, I doubt they will conduct the test.; December 18, 2008 2:58 PM
Anonymous said...: Mr Tan: think u should do some due diligence on these RMs now coming forward. Has the one who contacted u been retrenched recently y u-know-who? For your own reputation's sake, you should make sure your RMs will be credible witnesses in future and not using u to give a figurative slap to their ex or present employers.; December 18, 2008 5:27 PM
Anonymous said...: Good to know that the RM has admitted his mistake due to his ignorance.

Honest aside, he/she made a mistake and should be punished accordingly.

No immunity should be granted. There is a distinction between "whistle-blowing" and admitting your mistake. For e.g., I walk into a shop and broke an item, nobody saw. But I owe up at the cashier. Of course I need to pay for the damages.

Can the investors recovered their losses from the huge commissions that they made from the sale? If not, can send them to jail for fraud?

At least, getting something from the small fishes better than nothing.; December 19, 2008 2:43 AM
Anonymous said...: Mr respect for this RM and those who are willing to step forward; December 19, 2008 8:55 AM

Wednesday, December 17, 2008

Bank RM has courage and integrity

35 comments:

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