Update: In Parliament – Minister for Trade and Industry and Deputy Chairman of the Monetary Authority of Singapore said: “The MAS approach allows for a wider range of Singapore investment options to cater for diverse needs while keeping the regulatory framework”, which Mr Lim described as “fundamentally sound”. (Channel NewsAsia).
Rachel Chung / Columnist
Previously, I did not want to write about this issue because I did not want to pre-judge how MAS and the government will handle this issue. The silence, the position to distance itself, the local media blackout on HKMA decision and the eventual “breaking-news speed” of the local media coverage once again prove me right when I do not want to be.
Media Coverage
I am disgusted with how sensational journalism is being lent to invoke cheap emotions when there was raw sorrow involved. These photos are splashed across the front page of ST to show Mrs Ling “looking visibly less upset than last week…welcomed the Government’s move to help”.
I am disgusted at how the government is cited as a “hero” again. Well, get this straight. MAS only stepped out and issued a statement after Mr Tan Kin Lian’s event to help the affected folks drew thousands. It took a citizen to do the duty of what government people should do. The alarm bells must have gone off in a few government sectors. The government only issued a guarantee of deposits after HKMA pressured their banks to buy back minibonds products.
This is to ensure Singapore’s competitive advantage in the banking and finance sector and I believe, not out of any real sympathy for the people. And have the ministers or MAS ever stopped to ponder on why the banks in Hong Kong would agree to buy back the products? Why did their government or HKMA not pander to the banks?
And please. The ST headline on 18 Oct 08 made me want to vomit. “MAS to Banks: Do the Right Thing”. It was Tan Kin Lian who first blogged and told MAS to do the right thing!
The accountability of MAS
A financial dodo like me might not know how to read a financial product sheet but any qualified and probably overpaid snazzy economist or finance expert in MAS should know and should have known that the product sheets for Minibonds were dodgy. Time for the blame game soon.
The government likes to proclaim that it has no power or control over Temasek Holdings – would it be another skit of how MAS has no jurisdiction or power over banks? In the bid to whore out to banks making their global presence here, are we prepared to screw our people over offending them?
Difference between Hong Kong and Singapore
While Chief Executive of Hong Kong, Donald Tsang “pledged to help those caught up in the Lehman Brothers minibond row get justice if any criminal or civil liability is identified“, our MAS chairman, Mr Goh Chok Tong says that “that’s life, if you want good rewards, you have to take risks. Otherwise, leave your money with the CPF.” and that “MAS is a very professional, rational institution” Oh yes, that I have no doubts about. The MAS is indeed extremely professional and rational towards banks. What is the stance of MAS towards the people?
MAS managing director, Mr Heng Swee Keat, says “We expect them to do the right thing” … “to be accessed on a case-by-case basis“. Am I the only person who feels that such a statement is not straightforward and can be interpreted in creative ways?
While Mr Joseph Yam, Chief Executive of the HKMA, said that the role of the HKMA is to investigate complaints of mis-selling against banks - “The HKMA is dealing with the complaints as quickly as possible. It is, of course, very important that we do this objectively and without pre-judging the issue. If, after investigation, we find cases of mis-selling, we will treat them very seriously“; our MAS says that it has “asked the chief executive officer of these [financial] institutions to personally chair internal review panels to look into these complaints.” I am sure these CEOs will be totally impartial and there will be no conflict of interest to consider.
The Selfish Singaporean
Those people who are all smug and arrogant about how they “would not be cheated” or “would not buy something they do not understand” seem to have missed the point that the product was angled to be deceptive or dodgy in the place. Yes, at this point of time, we are all so interested to know your wisdom of diversified investments and how you are not so dumb like some old uneducated folks. Haven’t heard of saying the right thing at the right time?
Yes, I run the risk of sounding stupidly sentimental for objecting to such callousness, but look – gloat privately instead of rubbing salt in wounds, ok?
The feedback we have been getting is that mis-selling is rife. I have been getting calls from investors who say that their relationship managers told them it’s like a fixed deposit and that at the end of 5.5 years, they are getting 5% returns. Tell me that is not mis-selling.
I have my investment principles too but taking a cheap satisfaction at a time like this would belie anyone’s upbringing and basic sense of decency.
How you can help
Mr Tan Kin Lian is helping the minibond investors to seek redress. As such, he needs volunteers to help the investors write their statement of claim, as there are a few thousand statements to be written.
The statement will be based on the questions contained in section 1 of this paper:
http://tankinlian.blogspot.com/2008/10/general-advice-to-investors-of.html
If you volunteer, please send your particulars (i.e. name, e-mail address, telephone number, and postal code, language) to kinlian@gmail.com. He will put your particulars for the investors to contact you. As some of us might be inexperienced in dealing with such situations, Mr Tan will also kindly arrange a briefing to the volunteers on how to write the statement.
You can also read his advice to investors here.
Lucky Tan had compiled a list of questions to Parliament. Let’s see how the development pans out.
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What about DBS High Notes 5 Investors?
Donaldson – all minibonds/ high notes investors. I am putting in an article about that on my blog in a while. Thanks for the heads up.
The help is for all investors affected – be it high notes, jubilee notes, minibonds etc.
http://www.xtralicious.com/2008/10/20/help-for-all-affected-investors/
IF ETHICAL,
I wonder is it good idea to develop and broadcast tv programs that encourage people to invest back into the Stock Market so as to help the stock market?
Maybe can create programs that highlight why it is good time to invest in a downturn. Say all the positive things about profit opportunities in a recession.
Have reputable market players or financial institution representatives to sell people the idea of high gains in recession. But they can always say, they cannot guarantee bao-chia . Like this , they can say it like an expert but caveat emptor themselves out of trouble.
Will this work?
Likewise, I have ideas about how to influence people’s minds, but need to confirm with people if these actions are ethical.
regards
More Good Years and News.
The real hero is Tan Kin Lian…I hope he will make himself available as an independent candidate in the next election, and I am sure many will vote for him.
Keep it up, Tan Kin Lian, SIR!
Better still, ask ah tan to compete in AMK and see what would happen. If he needs a group to support GRC is not a problem too.
肥妹，
你说得太好了。 本地传媒真不要脸。
说来也真可悲，我们的传媒记者，编辑，为了那几千元薪水，不惜出卖自己的灵魂。
希望你继续努力，再接再厉。
etvwtd
Would it be fair to comment that
in light of the bank product investment fiasco,
that there are at least 10 000 Singaporeans who TRUST blindly
in the sense that they neglect their due diligence as an investor and the person who signs a contract? That is, is what they claim said by RM stated in the Contract?
I deduce that many Singaporeans have fallen into the TRAP of BLINDLY BELIEVING and TRUSTING people they do not really know?
I hope people from today onwards QUESTION everything they HEAR , READ and SEE for their own salvation.
Else, please be guaranteed for more such boo boos in future. As long as GREED and NAIVE MINDSET still exists…
regards
Accountable Selamat of Trust
“why the banks in Hong Kong would agree to buy back the products? Why did their government or HKMA not pander to the banks?”
Reusing the theory of the Paranoid old fart, it must be due to another “conspiracy to do us in” ! Hong kong must be jealous of us.
From
“MAS to Banks: Do the Right Thing”
to
“Tan Kin Lian to MAS to Banks: Do the Right Thing”
It must have been very expensive of ShittyTime to print the name of the hero.
In Singapore, the more money you paid to our gahmen the more retard and incompetent they are. Obviously the clowns are overpaid. Why ? Didn’t everyone know that there is such thing as LAW OF DIMINISHING RETURN ?
To know what it means, check it out.
http://www.economyprofessor.com/economictheories/law-of-diminishing-returns.php
It is a very important business law and compulsory for everyone to know. In layman term, it means that there is limit to how much a variable can do before it become ineffective and inefficient.
Anyone want to guess what is the variable ?
$$$$$$ $$$$$$$$$
“I deduce that many Singaporeans have fallen into the TRAP of BLINDLY BELIEVING and TRUSTING people they do not really know?”
They are forced to believe and trust the government but really who is my MPs and who is the ministers ? All these people are stranger to me, and how come clowns I don’t even know ask us to trust them. Trust them so much that old fart says Singapore no need to know reserve.
By the way, the main reason ppl buy into DBS product is because they trust the government as it is a government’s bank after all with stake and invested by Temasek Holding.
It’s true that we should QUESTION everything we HEAR , READ and SEE for our own salvation. Come to think of it, this whole saga and the many blunders that the gahment has made have destroyed the very basis of trust.
What kind of society will this chain of events produced?
People being cautious over one another will create an extremely unhealthy society.
I seriously think that this system needs to change. It should not be us having to be EXtra careful when we make our purchases, it should be the businesses have to be made accountable to the consumers and be honest in their dealings.
I don’t know why, but it seems like the gahment just don’t get it.
I am surprise that anyone expects MAS to be a tok kong institution ready to defend the interest of the savers?
After all, when the Government sets out to woo banking industry to decamp here, the one thing that was promised to these investors is a “hands-off” approach.
These so-called experts had already cock-up once before. Remember Barings bank? Nick Leeson?
Then Nick managed to fool the regulators into thinking he was such a hotshot. So what makes anyone think these MAS guys are any good at scrutinising these complex structured products.
Hey Nick Leeson even received award from the MAS and I think old LEE himself was there to present it.
Did anyone (MAS and investors alike) not learn from these episode?
I guess not.
Yes MAS was behind the curve for long time.
But as far as the old folks, poor educated are concerned, it is ahead of the curve. HK has not sent such a clear message to the banks.
So Rachael give authorities here credit for what trhey juz did.
I agree with your views. Those culprits (FIs) must be held responsible for mis-representation and the sector requires ‘clean-up’ immediately.
Yes, it was interesting to see how ST would spin its stories for PAP. After all the silence, we saw the old folks face and then how MAS helped the old folks.
TKL was conveniently replaced by MAS – what a sorry story.
Do you all know that all these misrepresentations had started donkey years back and it only takes a major crisis like the Lehman Collapse that there is NO SUCH THING AS A SURE THING.
I truely pity the old folks who had poured their savings into these questionable investments and I can safely assume that the RMs of the bank clearly use their position as a ‘banker’ to give so call ‘professional advice’ and the folks thinking they represent the bank must surely think they are safe. Well bottomline is if there is such thing as a sure thing, all of us will be rich.
Don’t mean to sound mean, I think we oughta start the blame from the top as they are the ones who set a certain target for the RMs to fulfill irregardless how it is sold. No point going for these small fries as barring them from the industry will not shake out the industry. Do you know how much the bank themselves would have made from selling these notes and bonds to the public? Do you think they too should be investigated as they are taking a cut from the sales too?
It is funny how we are always fed the good investments theory and outcomes from our investments and seldom are info revealed when there are also bad ones. Do you think that we also deserve the truth now? We have seen tieups with different funds worldwide, care to look how many of them are performing?
5) PAPTactics on October 20th, 2008 9.57 pm The real hero is Tan Kin Lian…I hope he will make himself available as an independent candidate in the next election, and I am sure many will vote for him.
Keep it up, Tan Kin Lian, SIR!
——————————————-
But if they do then the existing 3 seats by WP + Chiam maybe lost and leading to maybe 1 seat left for new opposition from Independent?
There is a risk that may take us 3 steps back when taking 1 step forward…
just my 1 cent.
thats how sg works, earns, and keep the profits among themself (the elites). the rest of singgaporeans are just cheap labour to work for them. why would they want to save the normal singaporean in this crisis?
not to mention the mainstream newspaper try to tarnish TKL by hinting hes having other objective by helping out these investor. just wonder how cheap our mainstream media can become when dealing with politically sensitive issue … come on, singaporean are not stupid as to be blinded by ur propaganda
“MAS managing director, Mr Heng Swee Keat, says “We expect them to do the right thing” … “to be accessed on a case-by-case basis“. Am I the only person who feels that such a statement is not straightforward and can be interpreted in creative ways?”
Actually when i first read this statement from dunno where, my 1st thought actually was, “How many claims would be rejected?”
Since it will be case by case, basically those weaker, less firm, less finanically incline pple will surely be taken for a ride and point by point argued that it isn’t valid, etc.
Then subsequently there will be a article stating so many pple has manage to get refunds and conveniently left out statistics on how many pple kanna rejected. =X
19) noobsg on October 21st, 2008 1.34 pm
not to mention the mainstream newspaper try to tarnish TKL by hinting hes having other objective by helping out these investor. just wonder how cheap our mainstream media can become when dealing with politically sensitive issue … come on, singaporean are not stupid as to be blinded by ur propaganda
Don’t forget from where TKL came from and why he left a place where he spend so many years developing the business and how his ideas of protecting the people was not being appreciated. I won’t be surprise if TKL popularity becomes so hot among the singaporeans that someone up there will feel threatened and tries to do him away soon. Believe me, this is nothing is new here.
“But if they do then the existing 3 seats by WP + Chiam maybe lost and leading to maybe 1 seat left for new opposition from Independent?
There is a risk that may take us 3 steps back when taking 1 step forward…
just my 1 cent.”
Oh yeah. Why not think this way, 3 + 1 = 4.
There is a potential upside of you take 1 step forward on top of the 3 steps forward.
1 cent is too little even for beggar to look at nowsadays.
好几年前传媒都应该揭发这些银行的丑行了，等到现在老人中招了，如果他／她们想不开从楼上跳下来，你们和那些银行的傀儡，你们良心过得去吗?不过，很赞赏肥妹站出来，希望更多传媒效仿！
just my 1 cent you said
“But if they do then the existing 3 seats by WP + Chiam maybe lost and leading to maybe 1 seat left for new opposition from Independent?
There is a risk that may take us 3 steps back when taking 1 step forward…”
Waz point of WP and Chiam? Got do anything to help the “vulnerable”. I vvv disaapt that they do nothing.
Right to attack MAS and govmin but I think Opposition juz as useless. And Chiam and Low got big MP salary.
.
Shitty Times only print shits and craps. Watch TV news, at least they are forced to report some of the unseen truth.
As for the MAS, FIRDEC, CASE and so call control bodies, are just facade put up to show people we have a control body. Just like some of the company who put up their ISO certification and print the ISO logo on all their namecard but not doing the right way……
Our so call consumer and monetary control bodies in Singapore are not pioneering or representing the consumer, they are just “verification” and “certification” institutes, a sign and stamp deptartment……
as usual
when something bad happens… authorities such as MAS will just come out n say everything u buy will have a risk
of course… everyone knows…
but its disappointing to hear them not to do anything..
i bet when this issue is resolved….MAS will be the one to come out and claim credit for pushing..the financial institutions to resolving it
haiz…