Andrew Loh
Eleven months after US investment bank, Lehman Brothers, collapsed, some investors of failed structured financial products in Singapore are still hoping for the authorities to help them recoup their losses. Their latest attempt at doing so is to petition the Singapore Prime Minister, Mr Lee Hsien Loong.
Some 10,000 local investors were affected when Lehman Brothers went bankrupt in 2008. Some of these investors have settled their claims with the financial institutions here. They were the lucky ones. Many others are still seeking a fair settlement.
About 350 of these investors gathered at Speakers’ Corner on Saturday to sign the petition to the Prime Minister. They hope that he will intervene to help them settle the year-long dispute with the financial institutions (FI) here. They had previously signed petitions to the Monetary Authority of Singapore (MAS) complaining of misrepresentation when they were sold the credit-linked notes. These notes include the Minibonds by Lehman Brothers, DBS Bank’s High Notes, Pinnacle Notes created by Morgan Stanley, and Jubilee Notes by Merill Lynch.
Led by the former Chief Executive of NTUC Income, Mr Tan Kin Lian, the investors were upset that the Singapore authorities were not as effective as the regulators in Hong Kong. “Justice in Hong Kong. Wayang in Singapore”, one of the placards read. “Protect Singaporeans, not banks”, said another.
In Hong Kong, 16 banks there which sold the toxic products to thousands of investors have agreed to return more than US$800 million to affected investors. 29,000 eligible minibond investors will receive 60 per cent of their original investment and investors over 65 years of age will be repaid 70% of the principal amount.
“The Hong Kong settlement is fair,” said Mr Tan, who hopes to obtain 1,000 signatures for the petition to the PM. “It’s a matter of people realizing what is fair.” He reiterated his earlier stand that the responsibilities, however, should be shared between the institutions and the investors in Singapore’s case. Referring to Hong Kong, he said, “The Securities and Futures Commission took the lead in the settlement. They recognized their responsibilities, not only towards the financial institutions but also towards the investors.” He hopes that the Singapore authorities would do the same.
So far, however, they have been disappointed with the response from the authorities and the banks. “After spending in a lot of effort in presenting our case,” the petition to the PM says, “we were disappointed to see our request for compensation totally rejected by the financial institution[s], or to receive an unacceptably low offer, being less than 20% of the invested amount in most cases.”
In July this year, the MAS released its report on investigation into the conduct of the FIs in the sale of the failed products. It found that the FIs did not adhere to guidelines in the sale and marketing of the structured products. The MAS subsequently banned 10 FIs from selling these products for between 6 to 24 months. However, investors were upset that there was “no recommendation by the MAS to these financial institutions to make a fair amount of compensation to the investors for the loss suffered by them due to the non-compliance.”
The petition calls for a “general settlement” which “is a better approach as the investigation report from the Monetary Authority of Singapore and a similar report from the Securities and Futures Commissions of Hong Kong have suggested that there is a strong possibility of the systemic mis-selling of these credit linked notes that affected nearly all investors.”
Referring to the settlement in Hong Kong, the petition urges the Prime Minister to “ask the Monetary Authority of Singapore and/or other relevant body to request the financial institutions to make a similar offer of compensation to the investors who are still pursuing their claims for compensation.”
Some of these investors have lost their life savings as a result of the investments.
When asked by The Online Citizen how hopeful he was that the Prime Minister will intervene, Mr Tan says, “It may be hard. But I am always hopeful.”
“If offered, we will accept this compensation and will be willing to bear our share of the loss,” the petition says.
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You can read the petition here.
Watch the video clip of Tan Kin Lian leading the recitation of the Pledge before the day’s event: http://www.facebook.com/theonlinecitizen
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Pictures from the event at Speakers’ Corner:
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Really pathetic !
Some 10,000 affected investors.
Less than 1,000 signed the petition.
Less than 500 attended this evening ‘s HLP rally
Anyway, thanks for the news coverage, TOC
I suspect those who are not affected, as in non-investors, could not care less to support these victims.
That could be 1 reason why not more than 350 attended.
Clearly, the new cameras’ effect is limited, if any.
I understood from some who were there, many signed something like non-disclosure thingie.
HK and Singapore – 2 financial hub or 1 a wannabe?
I heard that if RM resigned then they need not account for their misrepresentation?
Is this true?
Can an RM pls respond?
MR TAN
Thanks. 200 is a good turnout.
I think people who are affected now see clearly WHO and HOW is authority is going to behave. Once you see clearly, you do not want to see anymore. Well I am not sure whether it is a good omen or bad omen !
Great Eastern Announces One-time Redemption Offer to GreatLink Choice Policyholders
http://www.lifeisgreat.com.sg/en/jsp/broadcast/elifeplan/jul_sep09/art_glc.htm
I didn’t buy the above but got the news because I’m a GE policyholder for other insurance. At least GE has international standards. Can say the same of those banks hiding under the Minister of Finance’s inaction.
Oops, for the final line posted at 5) Hahaha on August 22nd, 2009 11.09 pm, I meant,
CAN’T say the same of those banks hiding under the Minister of Finance’s inaction.
Singaporeans who are cheated deserved 100% the PAP govt they helped to vote in. These old men/women should realise that all the PAP want is money and if you die, it is your own fault.
Vote PAP agin lah! Ha ha.
2) Somath Sinclaire on August 22nd, 2009 9.10 pm I suspect those who are not affected, as in non-investors, could not care less to support these victims.
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most people in singapore will invest sooner or later.
Apathetic Youths are not doing anything good to themselves by being indifferent on the issue.
As time goes by , they work (if they can find one or hang on to one), they would need to find ways to earn more money to survive here. This means invest.
The investment fiascos is a lesson.
This is a chance to improve the system.
Miss it and it may require another Big Fiasco in future for people to really learn.
Investing is not wrong. Its the investment houses that should be responsible also.
HK vs SG = different story. WHY?
China pressures HK Donald Duck to act, who will pressure LHL to act? Who?
Thanks to Mr Tan for his and his team’s effort and spending part of Saturday with the 350.
I never thot so many would turn out given the newly installed state of the art cameras.
Obviously, that has no effect.
Well done singaporeans (only those who attended).
Vox populi
Investors have spoken.
“We are happy with the gonmin, FI procedures. More than 10,000 bot. Only 5,000 complained. Only 200 turned up to voice their unhappiness.”
To the 200 – 350 unhappy ones, “Move On”.
Attending rallies and signing petitions by non-investor (no matter how well intentioned) is not the way.
If cameras deter unhappy petitioners from turning up, why shld we sympathise with their plight.
They want justice, but want it danger-free.
BTW, Andrew Loh and TLK are still walking the streets free men. They were prominent on the “mount” last year.
What is there to fear?
Cowards — those who signed petition but did not turn up because of the camera.
Bo chap — those who signed petition but did not turn up because it takes time to turn up.
Govmin and FI right to treat you the way they do.
PP PAP
people, it is futile exercise, just give up
11) A Tan on August 23rd, 2009 5.52 am Vox populi
Investors have spoken.
“We are happy with the gonmin, FI procedures. More than 10,000 bot. Only 5,000 complained. Only 200 turned up to voice their unhappiness.”
To the 200 – 350 unhappy ones, “Move On”.
Attending rallies and signing petitions by non-investor (no matter how well intentioned) is not the way.
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Allow imagining a scenario:
1. 10 K investors hand in hand with their dependents and friends. lets say this resulted in a population of 10k x 5 = 50 k.
2. how difference could 50K (1 national stadium) make compared to 200 ?
Surely there is a difference.
sadly, i see self-actualised prophecy.
HK is proof.
unique until cannot and 1 left in this world.
If PM or MAS do not help them settle, all these investors should become grassroots organisers for Tan Kin Lian in the next elections. Imagine, 1,000 people helping Tan Kin Lian in the elections. It will frighten the PAP. or 2,000 people! or 3,000 people!
It is the only way to wake the PAP up and get justice for yourself. Do not – DO NOT – depend on the PAP to give you justice! You must fight for justice YOURSELF!
Stand up, Singaporeans!!
If this is what PAP promises as “more good years”… then i can only imagine. What the hell is the next 10 gona be like if the senile old man’s family runs the regime.
Pity the aunties and uncles who were cheated. especially since some of it is their life savings. All just vanished like that. Of course heart pain– but also, of course the elites in their ivory towers will not understand.
#15 “Stand up, Singaporeans!!”
Rallies we need more.
Majulah!
#15
Based on attendance, PAP has nothing to fear.
700 over sign petition — only 200 -350 turn up.
What the odds of 1000 helping TKL?
Striats Times is not interested to publish this news anymore, they are more interested in Mdm Ho Chin’s breastfeeding story.
Mdm Ho Chin’s breastfeeding story is very interesting. I was glad my wife didn’t have chicken pox when she breastfed last year. Or H1N1.
I am more disappointed in local banks like DBS. That they had the audacity to sell such dangerous instruments of loss.
Now you know on whose side is MAS… Having said that many investors deserve to lose their pants except for the investors who were conned into buying these structured derivatives.
At the Invest Fair 09, the visitors come from all walks of life, young and old, hoping to get some tips from the con artist gurus. If they can teach you the skills I can too.
Maybe in the next Fair I should also have booth selling seminars on the skills of how to beat the IRs at their tables. No ,it is not gambling. It is about investing at the right time at the right table. The odds are better than those derivative trading promoted at the fair.
21) Jaded
Perhaps you can teach us how to count cards….:-) like the movie 21…lol
In investing, discipline decides the outcome of the investment and so is investing at the casino. Discipline means pateince too. As you enter into a casino you must have an objective and that is to make money and NOT to lose. Skill is about ability to assess probability of the game. Have you heard of Monte carlo simulation? We don’t go to such extent unless you bring along a UMPC to help you.Maybe timing works here although discouraged in investing.. When the game is one on one you have the best chance or at least equal chance.
That costs you $200….
Gambling is what LIFE is all about. You make decision and implement action that affect your future and that is the stake. It just that whatever activity that has higher probability of success and chronic assurance makes it look less like “gambling” but nonetheless it is still gambling.
“Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Typically, the outcome of the wager is evident within a short period.” From Wiki…
Outcome of the Gambling can be long term acording to what the old fart says about the pathetic investment of up to 30 years.
How come the rest 700 did not turnup at HLP?
can wear mask if they sick mah.
put on a hat and a tinted glass and you are basically invisible liao.
h1n1 no pray and pray leh.
I guess we can throw out Justice and Equality out the door after last week’s revelation……
Is this a case of Singaporeans (i mean only citizens) believing in the pledge (brainwashed?) but in reality it doesn’t exist? Is that the reason why these 2 virtues are being asked here? Hmm.. perhaps it’s universal but there is no reason not to want it and to see it in all aspects of our lives.
So does that mean we the citizens of Singapore need not work toward a society built on justice and equality? Not to even mention a democratic one.
Indeed there’s been alot of food for thought /questions for all Singaporeans this past week.
Who are we? Do we stand for the pledge or not? When was it abandoned? Or was it just a total mistake by the citizens. Ask the NS-men who died in the cause of doing their National Service because they believed they had something to protect?
Why is it that those that are most affected do not come out in solidarity with TKL to
try to fight for their cause? I think these people need to really ask themselves if they have totally feel it is a lost cause? Just admit defeat? Accept that ‘they’ themselves made the error investing in these toxic products? OR are they too ‘AFRAID’? of what? of who? Or are they living in their own shadows of fear?
Some has lost all their savings? large percentage? How much do they have to lose to realise they have to make their stand?
Whilst I applaud TKL’s valiant effort, I don’t see how those affected are doing themselves any favours by not standing behind TKL. By themselves, individually, there is as good a chance as a snowball in HELL if they want to see anythng done!
Why this apathy even when they are so grossly affected? Anyone out there?
We are a pathetic lot are’nt we? If we don’t wake up to want to make our claim on our country, I think we only have ourselves to blame.
Hey. Don’t push blame on others. Your fall is your own greed. When you make money did you credit the bank or your foresight? Blame your own judgement. Wake up please!!!
Hi orderofthecouncil,
You better wake up your insane thinking. Are you saying when you go to a high class restaurant is to get food poisoninng and not to get good food? Are you saying it is the duty of a bank to sell you toxic products? Are you saying you and your kids go to Singapore schools are to receive immoral educations?