This compensation is offered by none other than DBS Bank in Hong Kong. Now there might be some pressure on local banks to make the same offer.
I wonder if the sale of these minibonds had only happened in Singapore, what would have happened:
1. We had one senior politician telling people "That's life..." after they lost their life savings.
2. A regulator that declared it had no power to force banks to give compensation and asked banks to appoint their own investigators. A regulator that met with banks first and asked the aggrieved investors to go individually to the banks.
3. A population that is not allowed to protest on the streets and vocalise the injustice.
Contrast that to Hong Kong:
1. Day 1 : People were out on the streets.
2. Day 2: Regulator meets with the investors. Threaten to suspend bank licenses if wrongdoing is found.
3. Day 3: Political leaders declare they will help investors anyway they can.
4. Regulators initiate investigation into mis-selling. Threaten more action.
5. More protests....
DBS exists in Singapore and Hong Kong. Why is it the Hong Kong side that offered investors full compensation first? When we gave up some of our political freedoms, it might not have been clear what else we have traded away. The minibond issue is a clear illustration of what we have lost because it also happened in Hong Kong. The reaction by the our leadership and authorities to what has could have been grave injustice committed on senior citizens and investors was lack lustre.
DBS offer full compensation to mini-bond holders
Report by: Michael Logan
DBS Bank in Hong Kong has said it will offer full compensation to customers who bought mini-bonds issued by Lehman Brothers. Customers only need to prove to DBS that DBS staff misled them during the sales process (0:23).