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Coffeeshop Chit Chat - LuckyTan: PN9 and PN10 become worthless</TD><TD id=msgunetc noWrap align=right>
Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR class=msghead><TD class=msgF noWrap align=right width="1%">From: </TD><TD class=msgFname noWrap width="68%">Lola (Langusta) <NOBR></NOBR> </TD><TD class=msgDate noWrap align=right width="30%">Nov-14 11:44 pm </TD></TR><TR class=msghead><TD class=msgT noWrap align=right width="1%" height=20>To: </TD><TD class=msgTname noWrap width="68%">ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 4) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft width="1%" rowSpan=4> </TD><TD class=wintiny noWrap align=right>2536.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>http://singaporemind.blogspot.com/2008/11/pinnacle-notes-9-become-worthless.html
<HR><BIG>Pinnacle Notes 9&10 become worthless</BIG>
This is what the advertisement for the notes look like. The one above is for Pinnacle Notes 10. Right at the bottom it lists the reference entities Australia, Hong Kong, Singapore, SingTel and Temasek. None of entities have had a credit event but the notes are now worthless. The underlying securities were not bonds of Australia, Hong Kong and Singapore etc but a basket of toxic waste CDOs. If this is not mis-selling what is? Last week I spoke to friend who bought some structured products . He insisted that what he bought was very very safe and "guaranteed" by "govt" and Temasek and he was "sure" it was not high notes or minibonds. I told him to "better go and check"....it turned out to be Pinnacle Notes Series 10. The whole process of selling these structured products from the marketing material to the RM's sales pitch was designed to close the sales - no ordinary layman buyer educated or not can come close to comprehending the risks. You think the RM bothered to go through the list of CDOs that was the real source of risks? No, the RM who earned commissions would simply tell the customer that his investment is safe because of the reference entities - Singapore, Hong Kong, Australia, Temasek, SingTel - to close the deal. Pinnacle Notes 10 was sold only in one country : Singapore.
The Hong Kong govt has admitted that the whole regulatory framework from the approval of these products, marketing and selling has to be reviewed. In the meantime, they have frozen the sales of these products in the meantime. They have admitted that they have done something incorrect in the regulation of these products. They are now answerable to the people. The MAS has denied EVERYTHING. They deny that deregulation of these products have led to these problems. They denied all responsibility associated with debacle. In fact our leadership has laid the blame solely on the people who lost their lifesavings especially those who are educated and young. These people are now told that they have gone in with their "eyes open" and have no legal recourse ....and banks are compensating out of the kindness of their heart because legally it is "case closed". ...all these words from MM Lee.
In Singapore we (some of us) gave up some of our rights and personal freedom as a result of a social contract in which the PAP will protect the interests of the people without the full implementation of democracy. In this saga, we see this social contract broken (if not shattered), the govt took care of itself first, then its other interests with the people coming in last. Singaporeans who lost their lifesavings left to fend for themselves. .....
.[I have an urgent matter to attend to will complete this posting when I get home later perhaps after Hong Lim Park...please people, Singaporeans go to Hong Lim and show support for your fellow Singaporeans....learn something in the process.
Please post your comments and your views....I'll be back]
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<HR><BIG>Pinnacle Notes 9&10 become worthless</BIG>
This is what the advertisement for the notes look like. The one above is for Pinnacle Notes 10. Right at the bottom it lists the reference entities Australia, Hong Kong, Singapore, SingTel and Temasek. None of entities have had a credit event but the notes are now worthless. The underlying securities were not bonds of Australia, Hong Kong and Singapore etc but a basket of toxic waste CDOs. If this is not mis-selling what is? Last week I spoke to friend who bought some structured products . He insisted that what he bought was very very safe and "guaranteed" by "govt" and Temasek and he was "sure" it was not high notes or minibonds. I told him to "better go and check"....it turned out to be Pinnacle Notes Series 10. The whole process of selling these structured products from the marketing material to the RM's sales pitch was designed to close the sales - no ordinary layman buyer educated or not can come close to comprehending the risks. You think the RM bothered to go through the list of CDOs that was the real source of risks? No, the RM who earned commissions would simply tell the customer that his investment is safe because of the reference entities - Singapore, Hong Kong, Australia, Temasek, SingTel - to close the deal. Pinnacle Notes 10 was sold only in one country : Singapore.
The Hong Kong govt has admitted that the whole regulatory framework from the approval of these products, marketing and selling has to be reviewed. In the meantime, they have frozen the sales of these products in the meantime. They have admitted that they have done something incorrect in the regulation of these products. They are now answerable to the people. The MAS has denied EVERYTHING. They deny that deregulation of these products have led to these problems. They denied all responsibility associated with debacle. In fact our leadership has laid the blame solely on the people who lost their lifesavings especially those who are educated and young. These people are now told that they have gone in with their "eyes open" and have no legal recourse ....and banks are compensating out of the kindness of their heart because legally it is "case closed". ...all these words from MM Lee.
In Singapore we (some of us) gave up some of our rights and personal freedom as a result of a social contract in which the PAP will protect the interests of the people without the full implementation of democracy. In this saga, we see this social contract broken (if not shattered), the govt took care of itself first, then its other interests with the people coming in last. Singaporeans who lost their lifesavings left to fend for themselves. .....
.[I have an urgent matter to attend to will complete this posting when I get home later perhaps after Hong Lim Park...please people, Singaporeans go to Hong Lim and show support for your fellow Singaporeans....learn something in the process.
Please post your comments and your views....I'll be back]
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