58% of investors 'missold' Lehman-linked products to be compensated but ...

[R4g3]

58% of investors 'missold' Lehman-linked products to be compensated
By Nicholas Fang, Channel NewsAsia Posted: 16 January 2009 1836 hrs


SINGAPORE: More than half of investors who complained they were mis-sold products linked to the collapsed Lehman Brothers are set to be compensated. The Monetary Authority of Singapore (MAS) says the financial institutions who sold the products will inform affected investors of the level of their individual compensation amounts. These could range from partial to full compensation. Over 5,300 complaints were received from investors who bought Lehman Minibonds, DBS High Notes 5 and Merrill Lynch Jubilee Series 3 products. MAS says resolutions have been reached for 5,127 of these cases, including one quarter of investors who bought DBS High Notes and 11 per cent of those who invested in the Merrill Lynch product. The central bank is still working on the details for those who bought the Lehman Minibonds. But 25 per cent of complainants whose cases have been resolved will receive full settlement while 33 per cent will get partial settlement. The financial institutions are in the process of informing investors about the individual outcomes and this is expected to take a few weeks. If individuals are still not happy about the compensation they receive, MAS says they can still turn to the Financial Industry Disputes Resolution Centre for further mediation. - CNA/ir

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Although it is nice that 58% of investors 'missold' Lehman-linked products to be compensated but they did not state the amount to be compensated.

lets say if they only pick mainly those that are at the range of $10k-30k while rejecting those $100k-1m or even above, then 58% only represent the number of people which makes them look good but the actual amount compensated could be only 15-20% or even much lesser.

I hope they can be honest and reveal the actual amount.

Hopefully 58% is not some kind of number trick to make them look good.

 

[JinGanKor]

Although it is nice that 58% of investors 'missold' Lehman-linked products to be compensated but they did not state the amount to be compensated.

lets say if they only pick mainly those that are at the range of $10k-30k while rejecting those $100k-1m or even above, then 58% only represent the number of people which makes them look good but the actual amount compensated could be only 15-20% or even much lesser.

I hope they can be honest and reveal the actual amount.

Hopefully 58% is not some kind of number trick to make them look good.

Last time they used to reveal the amount compensated but this time they only reveal the % of the number of people. Something fishy here.

to give a simple eg. 4 people invested $1m each, and 96 people invested $10k each.
If they compensate the 96 people and reject the 4 people, they will achieve a figure of 96% of the people are compensated.

But when compare at the amount compensated,

total amont invested = (4x$1m) + (96 x $10k) = $4m + $960k = $4.96m

So the % of total amount compensated = 960k/4.96m x 100% = 19.35%
I am ignoring those partial compensation and taking all of them are full compensation.

So they can really look good by telling people that 96% of the people are compensated but the actual figure is only 19.35% of the investment are
compensated.

Please reveal the actual amount so that we know it is not a number trick that make them look good.

 

[R4g3]

don't think they will reveal the figures unless under some kind of pressure, and normally this type of pressure is very rare.

 

[masgnoeL]

Where is TKL's nemesis in this forum?....Zoombie, you here or not? Say something.

And where is that double header slippery eel Scrobal who turned ninja turtle when I exposed his devious charade on the MAS saga?

 

[Cestbon]

I guess total amount will be less than 30%. More likely 10%~20% range.

 

[Leongsam]

58% of investors 'missold' Lehman-linked products to be compensated

That's fucking ridiculous! All of those who purchased these high risk products did so with their eyes open in the hope of making big bucks. To compensate these twits just because the market went against them goes against all the principles of the free market.

I'm going to lodge a complaint with the authorities immediately. This dumb decision is a political one and the financial system cannot be allowed to be manipulated by politician wannabes.

 

[halsey02]

66.6% of the population were mis-sold about the government, do they get compensation?

 

[Zombie]

Where is TKL's nemesis in this forum?....Zoombie, you here or not? Say something.

And where is that double header slippery eel Scrobal who turned ninja turtle when I exposed his devious charade on the MAS saga?

Chinese New Year is coming, not much time for the papers.

http://www.straitstimes.com/STI/STIMEDIA/pdf/20090117/Settlements.pdf

Ignoring the impact of actual dollar amount, as explained by someone else in this thread.

10000(?) investors, and 5381 complaints.

1301 gets full compensation, mostly vulnerable group(?).
992 gets >50% compensation, should be happy no need to sue.

Balance 7700(?) with <50% (little?) or no compensation. And those (2300 above) with better chances, cut off from their class actions.

Is that what TKL wanted to see right at the beginning?
Is that what TKL wanted to see at the last protest? (Yes, he changed his stance.)

Anyway, he changed from Petition King to Survey King, and many people here (except Ah Hai) are losing interests.

What do you want me to say?

Kong Xi Fatt Chai.

 

[Ripley]

Well its better than nothing. All financial investments comes with risks.

 

[angie II]

"Wait a minute.. those who bought went in with their eyes open right? hehe.."
​

 

[masgnoeL]

Chinese New Year is coming, not much time for the papers.

http://www.straitstimes.com/STI/STIMEDIA/pdf/20090117/Settlements.pdf

Ignoring the impact of actual dollar amount, as explained by someone else in this thread.

10000(?) investors, and 5381 complaints.

1301 gets full compensation, mostly vulnerable group(?).
992 gets >50% compensation, should be happy no need to sue.

Balance 7700(?) with <50% (little?) or no compensation. And those (2300 above) with better chances, cut off from their class actions.

Is that what TKL wanted to see right at the beginning?
Is that what TKL wanted to see at the last protest? (Yes, he changed his stance.)

Anyway, he changed from Petition King to Survey King, and many people here (except Ah Hai) are losing interests.

What do you want me to say?

Kong Xi Fatt Chai.

Good you responded. You do have something to say and glad you said it here.

For me, I have nothing else to say other than holding MAS accountable as the sole regulator of the financial market. While it is easy to use an oxymoron word like "mis-sold", the root of the issue is MAS allowing for registration of devious bonds which backfired. Why Malaysia and Thailand and so many other countries' national banks were not suckered into this derivative camouflaged as bonds scam?

MAS is sleeping on the job or else it is incompetent. There are other more obvious reasons why such a situation is left to simmer here, but I am not saying anything more. I have no vested interest and just enjoyed myself laughing at the stupidity of the investors who were caught in their own greed. But someone who started it must clean up his own mess and that is MAS, even though many assume it is not privy to any commitments but many forget that if it, as the regulator, did not allow structured products to be sold to retail investors, this would never have happened. But it did allow.

All disclaimers are useless and void. It did not deliver its governance in a prudent manner so no point blaming on the global financial crisis. China is doing pretty well in this financial crisis. So are Malaysia and Thailand. Why so? Isn't it so obvious?

Sinkieland is the first country to go into a recession and we shudder to note that in Nov of 2007, when the DOW peaked, here in Sinkieland, we were told we will be having a golden period and it is boom-town Charlie. Now, we wonder who gave him this piece of wrong info. Is it MAS or MOF? Anyway, both are the same, isn't it? Think about it.

Kong Hee Fatt Chai.