<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Oct 27, 2008
HIGH NOTES FALLOUT
</TR><!-- headline one : start --><TR>DBS Bank to meet investors
</TR><!-- headline one : end --><TR>Move is in response in part to investors' call for open forum </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Lee Su Shyan & Diana Othman
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</TD><TD vAlign=bottom>
Lawyer Mr Loo, seen here meeting aggrieved investors, continued to get a steady stream of people visiting his Tagore Lane office yesterday to see what they can do about getting their money back. -- ST PHOTO: ALBERT SIM
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->DBS Bank will be meeting aggrieved investors of DBS High Notes5 on Thursday to address any questions they may have on the Lehman Brothers-linked structured product.
It will also meet investors of the DBS High Notes2 on Friday.
The dialogue sessions are partly a response to a request from 166 or so investors who asked DBS last week to hold an open forum.
Questions are likely to cover the compensation process for High Notes5 announced by DBS last Wednesday. The bank said that it would compensate investors in cases where the bank's standards were not met.
Questions may also arise over the finalised valuation of the DBS High Notes5. It has said that it will make a final announcement this week, although it is likely the entire principal may be lost.
DBS consumer banking head Rajan Raju will field questions at the sessions.
Mr Gerard Ee, the independent person appointed by DBS to oversee the bank's handling of complaints related to the sale of High Notes5, will also be present.
A DBS spokesman said: 'We have sent letters to investors inviting them to attend the dialogue. If we are unable to meet all of them, we will arrange for further sessions.'
High Notes5 experienced a 'credit event' whereby one of the entities in the basket - Lehman Brothers - went bankrupt. When a credit event happens, the issuer will terminate the notes.
While none of the entities has gone bankrupt with High Notes2, the investment also depends on the value of the collateral, which comprises 100 entities. Among these are Lehman Brothers, Fannie Mae and Freddie Mac.
Because of these troubled entities, the latest valuation of High Notes 2 is now only 11 per cent, which means it is now worth 11 cents for every dollar invested.
However, if the investment is held to maturity, the principal could be recovered if there were no other credit event.
Meanwhile, investors of DBS High Notes5, as well as other Lehman-linked structured products, continued to turn up at a law firm in Tagore Lane yesterday to seek legal advice.
Over seven hours, about 70 came knocking. This brings the total who have consulted lawyer Leonard Loo to about 200 since he started sessions last Monday.
Most wanted to find out how they might get their money back. They also expressed interest in the filing of a class-action suit against the financial institutions which sold them these products.
A corporate support officer, who gave her name only as Madam Teoh, 45, and her 50-year-old husband who was retrenched in 2006, had invested about $240,000 in Lehman Minibonds they bought from Maybank and Hong Leong Finance in 2006 and last year respectively.
=> Seems that it is a norm for Sporns aged 35 and above to be permanently retrenched? When will the 66% realize that FTrash create jobs for Sporns is blatant LIE?
The couple, who have two teenage sons, say a large part of their savings is tied up in the bonds.
'We're so worried. Can we get our money back or are we losing it all?' said Madam Teoh.
Her husband, Mr Ng, said: 'I have had a constant headache for a few days straight already. I am retrenched and we are all depending on my wife's salary.'
Another investor, who wanted to be known only as Mr Lim, 43, a sales engineer at a company selling electrical and mechanical products, has been losing sleep. He invested about $60,000 in another Lehman-linked product, Pinnacle Notes.
Most of those who turned up yesterday have approached the financial institutions involved and are awaiting responses. Many have also contacted or written to the Financial Industry Dispute Resolution Centre (Fidrec) detailing their situations and queries.
Several indicated interest in banding together to sue the institutions but are exploring it as a possible avenue should other options fail.
The Monetary Authority of Singapore has urged investors to follow the three-step process already laid out. This sees investors lodging their complaint with the bank. The next step is for the investor to resolve his case with the bank. If this is not achieved, the investor should then go to Fidrec.
[email protected] [email protected]
HIGH NOTES FALLOUT
</TR><!-- headline one : start --><TR>DBS Bank to meet investors
</TR><!-- headline one : end --><TR>Move is in response in part to investors' call for open forum </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Lee Su Shyan & Diana Othman
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Lawyer Mr Loo, seen here meeting aggrieved investors, continued to get a steady stream of people visiting his Tagore Lane office yesterday to see what they can do about getting their money back. -- ST PHOTO: ALBERT SIM
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->DBS Bank will be meeting aggrieved investors of DBS High Notes5 on Thursday to address any questions they may have on the Lehman Brothers-linked structured product.
It will also meet investors of the DBS High Notes2 on Friday.
The dialogue sessions are partly a response to a request from 166 or so investors who asked DBS last week to hold an open forum.
Questions are likely to cover the compensation process for High Notes5 announced by DBS last Wednesday. The bank said that it would compensate investors in cases where the bank's standards were not met.
Questions may also arise over the finalised valuation of the DBS High Notes5. It has said that it will make a final announcement this week, although it is likely the entire principal may be lost.
DBS consumer banking head Rajan Raju will field questions at the sessions.
Mr Gerard Ee, the independent person appointed by DBS to oversee the bank's handling of complaints related to the sale of High Notes5, will also be present.
A DBS spokesman said: 'We have sent letters to investors inviting them to attend the dialogue. If we are unable to meet all of them, we will arrange for further sessions.'
High Notes5 experienced a 'credit event' whereby one of the entities in the basket - Lehman Brothers - went bankrupt. When a credit event happens, the issuer will terminate the notes.
While none of the entities has gone bankrupt with High Notes2, the investment also depends on the value of the collateral, which comprises 100 entities. Among these are Lehman Brothers, Fannie Mae and Freddie Mac.
Because of these troubled entities, the latest valuation of High Notes 2 is now only 11 per cent, which means it is now worth 11 cents for every dollar invested.
However, if the investment is held to maturity, the principal could be recovered if there were no other credit event.
Meanwhile, investors of DBS High Notes5, as well as other Lehman-linked structured products, continued to turn up at a law firm in Tagore Lane yesterday to seek legal advice.
Over seven hours, about 70 came knocking. This brings the total who have consulted lawyer Leonard Loo to about 200 since he started sessions last Monday.
Most wanted to find out how they might get their money back. They also expressed interest in the filing of a class-action suit against the financial institutions which sold them these products.
A corporate support officer, who gave her name only as Madam Teoh, 45, and her 50-year-old husband who was retrenched in 2006, had invested about $240,000 in Lehman Minibonds they bought from Maybank and Hong Leong Finance in 2006 and last year respectively.
=> Seems that it is a norm for Sporns aged 35 and above to be permanently retrenched? When will the 66% realize that FTrash create jobs for Sporns is blatant LIE?
The couple, who have two teenage sons, say a large part of their savings is tied up in the bonds.
'We're so worried. Can we get our money back or are we losing it all?' said Madam Teoh.
Her husband, Mr Ng, said: 'I have had a constant headache for a few days straight already. I am retrenched and we are all depending on my wife's salary.'
Another investor, who wanted to be known only as Mr Lim, 43, a sales engineer at a company selling electrical and mechanical products, has been losing sleep. He invested about $60,000 in another Lehman-linked product, Pinnacle Notes.
Most of those who turned up yesterday have approached the financial institutions involved and are awaiting responses. Many have also contacted or written to the Financial Industry Dispute Resolution Centre (Fidrec) detailing their situations and queries.
Several indicated interest in banding together to sue the institutions but are exploring it as a possible avenue should other options fail.
The Monetary Authority of Singapore has urged investors to follow the three-step process already laid out. This sees investors lodging their complaint with the bank. The next step is for the investor to resolve his case with the bank. If this is not achieved, the investor should then go to Fidrec.
[email protected] [email protected]
