From the Associated Press / Picture from Straits Times.
HONG KONG – About 100 Hong Kong investors burned by complex financial products linked to failed U.S. investment bank Lehman Brothers protested Sunday, demanding securities regulators help them negotiate a settlement.
Tens of thousands of retail investors in this Chinese-ruled financial hub were hit by Lehman’s collapse in September. Hong Kong securities regulators announced a settlement deal last month for one group of investors who purchased certain Lehman-linked products through local banks, but the agreement did not cover products sold by Singaporean bank DBS Group Holdings.
Sunday’s protesters were demanding securities regulators step in to strike a deal for DBS clients.
The demonstrators bought so-called “Constellation” notes from DBS _ financial products that are linked to the credit ratings of a group of financial institutions, including Lehman. About 6,900 Hong Kongers bought HK$2.3 billion ($297 million) worth of the failed investments, according to K.C. Lok, an organizer of the disgruntled investors.
“DBS lacks a conscience,” “DBS is a swindler,” the protesters chanted at a park in Hong Kong’s downtown Central financial district.
Lok, who bought just over HK$100,000 ($13,000) in the Constellation notes, accused DBS of misleading its customers into believing the financial products were conservative investments.
“Many of the investors shifted their money from timed deposits,” Lok said.
DBS Hong Kong spokeswoman Glendy Chu said Sunday that the bank had explained the risks of the products and offered compensation to investors in cases where there was evidence of questionable sales practices.
Calls to the media office at Hong Kong’s Securities and Futures Commission went unanswered Sunday.
The deal announced last month would see 16 local banks returning 60 or 70 percent of the principal to thousands of investors in a payout that amounts to $6.3 billion Hong Kong dollars ($813 million).
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Another reason for them to hate SGP Inc
“the bank had explained the risks of the products and offered compensation to investors in cases”
Is that so???….questionable….
>“DBS lacks a conscience,” “DBS is a swindler,” the protesters chanted at a park in Hong Kong’s downtown Central financial district.
I can’t disagree any less. In my POSB current account statement for July 09, there is a statement below that says: “From September 2009, the average daily balance requirement for POSB Current Account will be $1,500. A fall-below fee remains unchage at $2 per month” (http://dbs.com.sg/posb/deposit/notice/current_account/Pages/default.aspx ). It used to be free for those who linked it up to their POSB saving account.
““From September 2009, the average daily balance requirement for POSB Current Account will be $1,500. A fall-below fee remains unchage at $2 per month””
Last time is $500, now it is $1500. Next change is predicted to be $5 per month.
EVen UOB now increased its late charge penalty to $50…
Amazingly the gov do nothing… oh because they get benefit from the deal too…
POSB service should be made affordable, at least for Singaporeans. Min $1500 daily to keep our current account with POSB free is uncalled for, especially for those who have linked it to their saving account.
Now I am wondering what the benefits of being a Singaporean are. Everything we used to enjoyed for being a Singaporean are slowly being removed. This explained why Singaporeans who have the means would rather migrate to other countries, and why many foreigners working in Singapore whom I know are not that keen to apply for PR or citizenship.
govt owned banks are their tax agents.
their profits are taxed and the remaining amount belongs to govt anyway.
How else to explain why the interest rate for home loan is higher than hdb?
We are all conned !
How else do you think they fund their high salaries.
Worst: they are not performing.
Double loss.
The Finance Minister spoke at the St Gallen symposium to the effect that countries are in a better position to regulate financial institutions after the economic downturn. How come we don’t see him doing anything?
Hmm…. deposit account and current account the same? Maybe some one check this out first.
Revision of Average Daily Balance Requirement for POSB Current Account
From 1 September 2009, the average daily balance requirement for POSB Current Account will be S$1,500. The fall-below fee remains unchanged at S$2 per month for accounts with average daily balance of less than S$1,500.
If you maintain at least S$1,500 average daily balance in your POSB Current Account (for accounts which are not linked to a POSB Savings Account) or the linked POSB Savings Account, the S$2 fall-below fee will not be applicable.
hmmm… seems that DBS the new policy imposes on accounts not linked to a POSB Saving Account… not Saving account.
Anyway, I don’t think it’s a good idea to park all your money with POSB or the local banks… the interest rate is simply too low (0.25% = 0.0025 cts for every 1 dollar). For $10,000 and you only get miserable $25 dollars per year.
My dream for singapore is to be like HK one day that we can stand in front of dbs office and say ” give me back my money “. Depending on the MAS to help us is like waiting for the hard boiled egg to hatch.
Our society is neither here or there, democracy?? Communism?? even communists are allowed to protest. So what are we?worst than communism. We shld not allow this “worst than communism system” in singapore.
hi Mr HaiGong,
Our society is non democracy, non communism; but imperialism., ruled by Emperor Lee.
” For $10,000 and you only get miserable $25 dollars per year.”
They forget to insult your intelligence by telling you that although it is low interest at least, it is guaranteed return. Remember this is the kind of ridiculous reason to justify low interest of CPF that doesn’t evolve with inflation by our expensive clowns ?
Nope HaiGong ,
taiwanese like will be good 2
we must be thankful for the Hong Kongers who protested on the behalf of S’poreans who cannot on local soil.
we should be more gracious to them. ;)
Well HK investors will get something….all we get is to hear “shut up and sit down” from MAS
Hongkong was ruled by the British, if only Spore had not been spoiled by LKY, a once Japanese lacky, we would have been like HK.
Dumb & Dumber is absolutely right. Sporeans, pls wake up, the Finance Ministry is the shareholder of Temasek who owns most of these banks. Are they going to give you a fair deal? or regulate themselves to give you a fair deal? They say Temasek is your money, but do they promise any returns to you? Not that anyone know of! So WAKE UP SINGAPOREANS! ENOUGH IS ENOUGH! PLS VOTE pap OUT!
#3) Daniel on August 10th, 2009 9.52 pm
EVen UOB now increased its late charge penalty to $50…
Amazingly the gov do nothing… oh because they get benefit from the deal too…
You are damn right Daniel, just like those motor insurance premiums they keep going up and up every year, the premium paid my motorists these days are even higher than those road tax in the past, and funny thing the govt keep very quiet, maybe as you say they benefit from those high premiums too or worst those people behind all these increases are somehow connected or related to those who are in govt sectors, you scratch my back, I scratch yours, lets gang up and suck those motorists dry.
now i know why i switch off the tv on 9/8/09 @ 8.22pm…. it’s all BS…
to haigong
Who says communist countries allow their ppl to protest? Do you know it is just as illegal?
People in those countries protest because they dare to speak out even though they know it’s illegal.
We on the other hand suck our thumbs, whine and hope that somehow, things will turn for the better. Just like what i’m doing now.