Outcome of DBS dialogue with highnote5 investors today

[Avantas]

“DBS highnote5 investors to know outcome of resolution by year end. Investors remained dissatisfied.”

- Channel News Asia

“They come here with a template saying they will treat case by case again and again. This is irrelevant.”

- Investor T K Sew

“There will always be a lot of urgency from our customers for a quick settlement which regretably we cannot do because we got to establish a basis, get the facts together and reach an outcome.”

- DBS Head of Consumer Banking, Mr Rajan Raju

“It is important to have a feel of what customers are saying and feeling so that when we look into their files, we will take it into consideration.”

- Gerald Ee, an external independent adviser appointed by MAS

Watch the CNA video here:

http://wayangparty.com/2008/10/30/dbs-dialogue-with-highnote5-investors-on-30-october-2008/

 

[mscitw]

those stupid peasants should not fall into DBS's 'divide and conquer' tactics.

 

[imperialarms]

go to Shenton way and riot, talk so much for wat

 

[popdod]

those stupid peasants should not fall into DBS's 'divide and conquer' tactics.

Break into smaller groups....easier to tame.
Strategy 101.

:o :( :o

 

[Zombie]

those stupid peasants should not fall into DBS's 'divide and conquer' tactics.

Under a law, bank employees are exempted from recommending the right structured deposit product. That means there is no common ground to come together.

 

[madmansg]

how come gerald ee come into play whenever peasants are unhappy ?

 

[lepkwl00]

In a letter dated 31 March 2008 sent by DBS regarding DBS High Notes, it was stated “.... it would take several underlying reference entities in the collateral to suffer Credit Events before investors suffer a loss to their principal amount."

In actual fact, it only requires one underlying reference entity to suffer a credit event to wipe out the whole principal amount, not several underlying reference entities. This is the case in the bankruptcy of Lehman Brothers which is a credit event to only one single reference entity.

Saying that it requires several reference entities to suffer credit events before any losses will be incurred gives investors the wrong impression that there is some kind of buffer and may have delayed them from selling the product and cutting their losses earlier.

Furthermore, since an official letter from DBS can get it so wrong with regards to the workings of the product, then it is reasonable to conclude that the Relationship Managers selling the product is no better at explaining the exact workings and risks of the product to customers when making the sales.

Thus, I do believe that all the investors of DBS High note series have a strong case against DBS if they wish to recoup all their money. I wish to stress that base my above analysis, every investors have a strong case regardless of your investment risk profile/appetite. The best course of action is for all the investors to negotiate with DBS or take other necessary actions collectively. I urge all investors to seek legal redress if DBS is not willing to accept full responsibility as I believe DBS is standing on shaky grounds as a result of the release of the said letter to the investors.

I wish to give DBS the benefit of the doubt and believe that this is only proof that DBS as an institution is clueless about how the product actually works and that it is not out to defraud the customers with wilful misrepresentation.