Thursday, September 25, 2008

Latest Twist - MAS to banks : Appoint your own investigators!!!

From today's Today Pg B2:

"...... companies that sold the DBS High Notes 5, Lehman Minibonds and Merrill Lynch Jubilee Series 3 LinkEarner Notes will name independent parties, as a result of a deal hammered out by MAS and the bank...".

Why must a regulator like MAS "hammer out a deal" to get banks to name a third party to oversee its the "complaints handling process"? MAS has not even met aggrieved investors who are mostly retired ordinary Singaporeans to see what is needed for them to seek redress but it has already met the banks to negotiate this deal in which the banks will choose their own third party to handle the complaints. Investors who originally trusted these banks that sold them those products are now expected to trust the banks to appoint "independent" third parties? Did we not pay our govt enough to meet ordinary Singaporean investors collectively to help them resolve this? Where is the leadership??!!

Among the first thing the HK govt did was to meet the investors to hear them out. The next thing they did was to initiate an investigation into mis-selling: [Link]. Singaporeans you did not pay your govt enough to do all this for you!!!

“Having conducted several meetings with Minibond investors in the last few days to hear their grievances, we have decided to conduct formal investigation into allegations of mis-selling by certain licensed intermediaries,” says Martin Wheatley, chief executive officer at the SFC.

Now the MAS will take action based on documentation from the banks aided by these third parties appointed by banks instead of conducting its own investigation. This will entirely undermine any case that investors can put up because they have to now give their evidence to the bank first for processing. What is the MAS doing??? Where is the leadership in all this?

"We are conservative investors not risk takers. It is my mother's hardearned cash, and she is 78, why would she want to place her money in risky investments....if a robber comes to rob your house, the police will pursue and try to recover your stuff. Surely, the same idea should apply in this scenario " - Ms Koh, whose mother sunk $200K into Minibonds, Today, Pg B1
Perhaps we don't pay our leaders enough to feel the outrage as the lifesavings of old ladies are lost. Why is the MAS hammering deals and meeting with banks that have acted so irresponsibly and greedily in this whole episode? Ordinary Singaporeans are not worth meeting? Shouldn't MAS be organising any collective action to recover their lifesavings instead of Tan Kin Lian. We are told that we have world class govt, leaders without whom this nation will sink. ...leaders who will stand along side the people in their time of need and crisis. So where is the leadership???...Where?


Anonymous said...

You are right Lucky, we did not pay enough to MAS.

If pinkie or woody were to make the complaints, I am sure MAS will mobilised everyone to investigate.

We are peasants, a NOBODY, hence we will be left behind and we died is our business.

Anonymous said...

i never recall any incident when the PAP govt step in to fight for Singaporeans' rights......I only know the Singapore government works hard to resolve issues if it involves ang mo or foreigners' interests here.

Singaporean (i mean not those rich ministers and cronies), you die your business lah.

Onlooker said...

I believe in Karma if they mishandle this further the reality will hit them like a ton of brick when they realised they do not have the courage of other countries to protect their own citizen assets.(Not only the assets of the elites.)

Anonymous said...

Lucky Tan is not thinking straight.

It is the banks who pay the bulk of the taxes, not the peasants. Which government in their right minds would side with the peasaants, let alone meet with them?

We operate in a pro-business environment. And in a pro-business environment, the interests of the big business override everything. You peasants can go **** yourselves!

Anonymous said...

Another bailout? LOL!!

Anonymous said...

It is interesting only Lehman's or ML's linked product are being scrutinised or highlighted.

Look at it this way, these are definitely not the only products in market.

This is a great opportunity to involve everyone to relook at their own investment, whtr investment linked insurance product, unit trust, bonds etc with their respective FI/banks.

collective action.

PAP mafia said...

"Now the MAS will take action based on documentation from the banks aided by these third parties appointed by banks instead of conducting its own investigation."

Wow this is damn world class! The crook demand every shred of evidence from the victims, consults with his lawyer on the best way to work around the case, and walk away from the case unscathed and without any liability!

Anonymous said...

To those who lost money on this financial product *and* voted PAP, I say serve you right!

Anonymous said...

The big banks in America are too big to fail so the Singapore Government through GIC/Temasek must pump in money to help. The small investors in Singapore are too small to matter, so the Singapore Government just ignore their plight.

What is the Government for? You believe it is by the people and for the people?

Anonymous said...

Appointing your own investigator?

Just as good as having the accused hiring his own PI to prove his innocence!!!

Anonymous said...

Ah . . . you see, that's the way this govt operate.

Remember when Mas Selamat escaped, who appointed the COI ?

What do you expect ?

Anonymous said...

Congrats MAS for your bright idea by asking the Banks to appoint their own investigators.....

I am sure you would allow the BANKS TO PICK THEIR OWN JUDGE when these cases go to courts...

Well done, MAS.

Anonymous said...

auditors & lawyers still are in great demand these days.
i believe though independent party is appointed by the banks themselves, it still needs to be approved by the authority. and the expenses derived from the investigation by the independent party will probably be paid by the banks (not the retail investors, not the authority, not the tax payers monies i hope)

still i find hong kong authority way of handling more humane

Anonymous said...

Hello Guys!

Please extend some sympathies and help if possible, spread the word, tell them about the avenues available to them, point them to Tan Kin Lian website.

Those affected probably had invested their life savings into these unscrupulously sold financial products.

And likely they did so, as anyone sensible would do, hoping that they are sitting on a nice nest-egg.

This is not greed, there's no fat cats involve, except for those who made money off their suffering.

The injustice here is unbearable, our regulator is not impotent, they have the authority to act upon these failings, yet they choose to handle this in such nonchalant manner.

I can't believe that when the product unwound, all underlying value to lost, it is simply impossible and defy reasoning.

I also don't believe this issue can be sweep aside, as MAS did, if those who feel they have been mis-sold bind together can take collective action.

And if as the PAP govt. claims, Singapore's judiciary can stand up high with the kind of recognition it says it is accorded, then in this case, it shouldn't be too hard to prove who's at fault.

For those who say MAS action meant it is represent freewheeling enterprise, how wrong can this be when it is seen to rewarding bad business practice.

Help the underdog fight back!

Anonymous said...

MAS bringing management of DBS to task?

Look who is managing MAS and the board of directors and major shareholders of DBS.

You get the picture?

Anonymous said...

We were given choices in the past but chose otherwise.

Do give others a chance to prove their worth in the next election. We can afford the 5 years wait if things go wrong.

Anonymous said...

MAS bringing management of DBS to task?

Look who is managing MAS and the board of directors and major shareholders of DBS.

You get the picture?

Of course lah, this applies to all areas that are managed by the same people.....and still can claimed themself to be "world class" what a dirty world we are living in these days.

Anonymous said...

All the minsters and ex-minsters will give each other a wink and a nod and - let's move on - to greater GDP / GNP growth for singapore cos their bonuses depend on it! let's go Fi tonight!
Retail investors - didn't they read page 18-20 of the DBS prospectus??

Anonymous said...

Do you even believe them? When Malaysia threaten to close CLOBs, LHL assured everyone that everything is well and that the scripts are traded in Singapore and are valid. Finally when CLOB was offically closed, what did he says? "You need to be responsible for your own risk in your trade in CLOBs.

Thanks again! I have learn to decide myself. I appluad those who decides it's not worth the risk when MAS says that BEA is well.


Anonymous said...

The problem with some people is that they never learn their lessons. A year or two down the road when things begin to look rosy again, all is forgotten. Just like our politics. Talk and complaints about COL, expensive this and that, this up and that up, but come election time it is still going to be thunder and lightning. I have given up.

Anonymous said...

Me just interested in an old bastard, when is he die-ing. and the farking son cancer come back.

Hope said...

MAS has given me a telephone no to call to register my complaint. I did, and was shocked to note that the so called independent party is a May Bank employee who worked in a compliance dept!! In view of conflict of interest, how will a normal human uphold justice if his/her interest is at stake??