I din buy, but this shows some humanity man!
HONG KONG - HONG Kong banks agreed to return more than US$800 million (S$1.15 billion) to investors burned by Lehman Brothers-backed products, potentially ending a nearly yearlong dispute that sparked street protests and exposed problems in the financial center's markets.
The 16 banks will return as much as 70 per cent of the principal to around 29,000 investors who were sold so-called mini-bonds backed by US investment bank Lehman Brothers, said the Securities and Futures Commission, the Hong Kong Monetary Authority and the banks in a joint statement.
The deal has been brokered between the two regulators and the banks. The refunds could cost the 16 institutions up to HK$6.3 billion (S$1.17 billion).
The banks will also set up a HK$200 million fund to help pay legal costs of trying to recover collateral that was backing many of the investments, possibly increasing the payout for investors.
Martin Wheatley, chief executive of the territory's securities watchdog, the Securities and Futures Commission, called the deal a 'watershed'.
'This is a huge settlement,' Mr Wheatley told reporters. 'It is unprecedented, certainly in Hong Kong and most other jurisdictions around the world.'
The dispute erupted in September after the collapse of Wall Street investment bank Lehman Brothers Holdings Inc, throwing into doubt the value of financial products it backed and channeled to Hong Kong investors, many of them retirees, through the territory's banks and brokerages.
Facing billions of dollars in possible losses, investors took to the streets. Meanwhile, authorities opened probes, lawmakers condemned regulators for failing to protect investors and banks were accused of deceptive selling practices.
Critics of the banks said they inaccurately portrayed the risky derivatives products - most of which went by the wholesome sounding name of 'minibonds' - as safe investments. -- AP, AFP
HONG KONG - HONG Kong banks agreed to return more than US$800 million (S$1.15 billion) to investors burned by Lehman Brothers-backed products, potentially ending a nearly yearlong dispute that sparked street protests and exposed problems in the financial center's markets.
The 16 banks will return as much as 70 per cent of the principal to around 29,000 investors who were sold so-called mini-bonds backed by US investment bank Lehman Brothers, said the Securities and Futures Commission, the Hong Kong Monetary Authority and the banks in a joint statement.
The deal has been brokered between the two regulators and the banks. The refunds could cost the 16 institutions up to HK$6.3 billion (S$1.17 billion).
The banks will also set up a HK$200 million fund to help pay legal costs of trying to recover collateral that was backing many of the investments, possibly increasing the payout for investors.
Martin Wheatley, chief executive of the territory's securities watchdog, the Securities and Futures Commission, called the deal a 'watershed'.
'This is a huge settlement,' Mr Wheatley told reporters. 'It is unprecedented, certainly in Hong Kong and most other jurisdictions around the world.'
The dispute erupted in September after the collapse of Wall Street investment bank Lehman Brothers Holdings Inc, throwing into doubt the value of financial products it backed and channeled to Hong Kong investors, many of them retirees, through the territory's banks and brokerages.
Facing billions of dollars in possible losses, investors took to the streets. Meanwhile, authorities opened probes, lawmakers condemned regulators for failing to protect investors and banks were accused of deceptive selling practices.
Critics of the banks said they inaccurately portrayed the risky derivatives products - most of which went by the wholesome sounding name of 'minibonds' - as safe investments. -- AP, AFP
