Sunday, November 02, 2008

Spunky Retiree hammers DBS....

You should watch this:

"They have no conscience at all...."
- Retiree Mdm Ng
Based on what this lady has said there is a lack of integrity in DBS. This lady said she was sold an equity linked product and the young bank manager at the bank dubbed her with false written assurances. She had also written to the top management of the bank to no avail. Is a culture of greed and dishonesty systemic in the bank? The bank is paying for it with its reputation is now badly damaged in Singapore and Hong Kong.


The DBS High Notes 5 had a staggering default risk of 8% (see Dr. Money article above) and they sold this to retirees and the uneducated some of whom they have agreed to compensate. They failed completely to uphold the value of integrity at the bank. Mdm Ng called this "bankditcracy". You think about it if they mis-sold these to the vulnerable, you think they will have any qualms about mis-selling this to the "less vulnerable"....Of course not - it requires less betrayal of conscience to mis-sell it to the better educated and younger! Like I said in my previous posting, the only way to sell a product with a 5% return and 8% failure rate is to misrepresent it because nobody in the right mind will buy it.

"I think the prospectus says 'you could lose all or a substantial part of your investment in the Notes' in bold print, on page 1 or 2 " - PM Lee


"Sir, are you helping to defend the bank. Hey whose side are you on?!" - Lucky Tan
.
In the prospectus of many structured product they put in this phrase "...you could lose your whole investment ..." blah blah blah. That is one ambiguous statement and does nothing to help the investor understand the risk because you could lose your investment with 0.0001% or 10% probability. The RM mis-sells the product by saying "it is very safe".....all the credit events "won't happen"....as safe as "safe deposit". In most cases, the investors I spoke to did not even have the prospectus when they bought it. The prospectus is written by lawyers to contain every damn thing so that the bank can defend itself in a lawsuit. But if our leaders are saying the banks can now sell all sorts of financial junk and garbage that will hurt ordinary Singaporeans just because they have covered themselves legally in the prospectus, I think they not fit for office. They don't seem to be outraged that his citizens were dubbed by toxic products that have risks that were not revealed to them. Perhaps we didn't pay them enough for such a response.

22 comments:

Anonymous said...

I only have one question for Mdm Ng, who did she vote for the in the past elections? Enough said.

Anonymous said...

I know Mdm Ng (and many many others including those who are not affected by these structured products) will Not vote for PAP in the next elections !!

Anonymous said...

Mr. PM Lee :

Do you know that the majority of the RMs did not give the prospectus and pricing statement to the investors before the sale ? The RMs cheated, they withheld vital info to the investors so they can close the sale and pocket the fat commissions !!

It is unfortunate that the 3 independent parties appointed by MAS didn't uncover the truth and inform you. That is what happened when MAS get the FIs to pay them for auditing the process.

Anonymous said...

great viewpoint. The government is simply not helping the ordinary folks. They will remember their arrogance in time to come. There is this much the people can take

Anonymous said...

Just FYI. In USA, those conned include school boards and large public entities.
http://www.iht.com/articles/2008/11/02/business/02global.php
http://www.iht.com/articles/2008/11/02
/business/02global.php

This seems to show how ethics has gone out the window in the financial sector.

On aside, wonder if there will be many desperate enough to sell their organs. Will ethics in the medical profession follow too?
http://mrwangsaysso.blogspot.com/2008/11/money-for-kidney-and-life.html
http://mrwangsaysso.blogspot.com/2008/11
/money-for-kidney-and-life.html

Great Banker Goh Chok Tong said...

Hi Folks,

PM Lee has no heart. MM Lee has no eyes. I have no brain.
What does that make us?
Multi-talented ELITES to be paid millions of peanuts!!! HAHAHAHA
Vote for my Swiss Bank in 2011, OK?

Great Banker Goh Chok Tong

Anonymous said...

Please don't blame the RMs. You are falling into the banks' trap.
The banks want to pin all the blame on the RMs to avoid liability.

Think about it. Do the RMs have the means to compensate the affected investors?

Do the right thing; target the banks and hold them fully responsible.

Anonymous said...

Always the lower rank get sacked to take the blame. Just the same as the MSK detention escape fiasco.

But this mdm ng also something wrong, she is praising the MOH and transport system here...if not because of her low return for her investment, i believe she will be a hardcore pappies supporter.

Anonymous said...

All these Mdm Ng and burnt investors will definitely vote for PAP because it will PROBABLY BE GRC WALKOVER FOR THEM.

THEY ARE GOING TO SCREW BY THE GOVERNMENT ON VOTING, AND FRAUD BY GOVERNMENT-LINKED BANK.

Anonymous said...

The brightest of the brightest cannot be allowed to fail. It's impossible that they can fail. They are so smart!

Anonymous said...

Lucky, this is by far your best rebuttal to this unfeeling government.
Luv it.

Anonymous said...

The courts are pro-business, not pro-investor. Singapore law don't protect workers or consumers. They protect the big businesses that pay taxes.

Go and sue lah! If you can get the courts to make DBS refund you, I cut my balls off!

Anonymous said...

From above anonymous poster: "But this mdm ng also something wrong, she is praising the MOH and transport system here...if not because of her low return for her investment, i believe she will be a hardcore pappies supporter"

This Mdm Ng was praising MOH, how the 3rd class COW BU WAN handled the SARS fiasco when those who read posts on the internet (not reports by our mainstream media prostitutes) and seen the numbers can only conclude it was a disaster compared to HK.

Mdm Ng has yet to open her eyes! I bet if she has some serious ailment in need of constant medical attention, she wouldn't be singing praises about this malaysian trash minister or PAP in general.

Its a good thing this DBS cheated this particular group of old farts though, it certainly woke up some zombied Singaporeans and the only way to wake up Singaporeans is when it hit them hard -- their money and retirement nest eggs!

Anonymous said...

Sue the banks lah! See who got more money...see who more powderful...

You win, I cut my kkj off!

Onlooker said...

Wow, the retirees are finally standing up.
Now Things are really getting interesting.
Somehow there is a nagging feeling that our millionaires are following what the Hong Kong Government is doing to avert a crisis that should have been solved proactively by the millionaires who are "Reputably" the cleanest and most efficient ruling body.
And Sha mugan (sha kwa li liang da) is wrong again sadly. He on the wrong direction in dealing with the foreign crisis.would recommend him to read the fong yun HK comic ni pu sa lines.

Anonymous said...

i was asked to invest by a brokerage firm in the Jubilee notes. The agent there met me and gave me a 1 page fact sheet and asked me to invest !
I asked more questions and she couldn't answer, so I requested for the full prospectus. Took me some time to understand it and when I asked more questions on it, she couldn't answer. What's more she supposed to be the one qualified by the brokerage to sell these stuff.

Think most RMs the same. They don't have the knowledge and training.

Anonymous said...

I agree with the last post. The salespeople in the these financial institutions lack the knowledge and the training.
So, here's my point. They are the pawns (much like the runners for drug dealers). They are expandable.
Now, if I run a company, I WILL HAVE TO BE RESPONSIBLE FOR MY STAFF. SO WHY NOT THESE FINANCIAL INSTITUTIONS?
So, leave the sales staff alone. The bigger fish to fry here are the financial institutions.
These sales people are eventually going to have the blame put on them and get fired. Let the boat sink with them. It's not fair that they go into the water without the boat sinking too...

Anonymous said...

Hong Leong Finance isn't even a bank. And yet, it is the first to start paying out the refunds.

Anonymous said...

I invested in startrack as well and it belly up. I did not lose much, as I spread it out in other Investments plans. But it still very painful.

At this like this I really appreciate the efforts of Mr Tan Kin lian, yourself and others.

I am however, very confused why the really smart people who can hit so hard that the powerful ppl cannot get up, ppl like the brotherhood have decided to wash their hands clean.

I wonder dont they know that we retirees are the ones that need their help now?

Very sad and disappointed, nothing has come from them.

Anonymous said...

Our leaders have too much vested interests in the GLCs - banks, businesses, shipping, newspapers. Conflict of interests affects their actions.

Singapore also is not used to people power. There is a prevailing belief that no matter how bad PAP is, people will still vote PAP.

I think that's how the leaders are thinking now; no matter what, those cheated by minibonds and lehman will still vote PAP. Worse come to worse, redraw electoral boundaries again to swallow up the opposition lor.

Anonymous said...

To my fellow Singaporeans,

Stop bitching on the Net and suffering in silence. You have a choice. But unfortunately, you outsource your brains to the govt. YOu get what you deserve.
Stop moaning and feeling sorry for yourselves. Do something about it when you can

SS

LVH said...

MAS the financial guard dog was definitely caught off-guard. They were most probably sleeping on the job...these highly paid scholar-type people running the govt and MAS should take out $$$ from their own pocket and compensate us the structured products investors. We trusted them to safe guard our financial system but they failed us. Now they should pay for their mistake instead of sitting on the side line and just point fingers at the FIs.