Minibonds: The story so far...

[Sabian]

Minibond holders still grappling with outcome

 

Retirees hardest hit; investors continue to seek answers

 

By SIOW LI SEN

 

(SINGAPORE) Shame, depression, anger, desperation and worst of all fear. These are just some of the emotions investors are displaying as they struggle with their savings.

 

A month after Lehman Brothers went bankrupt, people who bought structured products linked to the failed bank continue to make the rounds of banks, brokerages and Hong Leong Finance, which sold them the products, trying to get answers.

 

Reporters covering the stories of retirees who bought the products sometimes find themselves in the role of counsellors.

 

Mary Kwok, 75, illiterate and blind in one eye since her 40s, said that she has thought of suicide.

 

'I told my MP I'll commit suicide when I run out of money and have no food,' Madam Kwok said in Cantonese.

 

She invested $400,000 of her hard-earned money in Minibonds sold by Maybank. And now she is bewildered that her signature on forms that said she understood the products can be used against her. 'Everyone knows you have to sign when you open an account or put money in a bank,' she said.

 

Although a Maybank executive has contacted Madam Kwok to ask how she was sold the product, she is scared the bank will twist her words. 'Now I don't want to sign anything, even holding a pen makes me tremble,' she said.

 

'I paid $100,000 to learn about the credit event,' a 64-year-old said bitterly outside DBS Bank's Shenton Way branch yesterday morning.

 

He was among 11 DBS investors who turned up to complain about being mis-sold the product and found themselves surrounded by reporters and the bank's security guards.

 

An attempt to protest outside DBS had been called off after the police warned it would be illegal.

 

'I'm ashamed. Losing money is not something to be proud of,' said a man who did not want to give his name, before he and his wife were ushered into the DBS auditorium.

 

DBS staff laid refreshments in the auditorium while talking to the customers. Reporters were not allowed in and at one point were asked to leave by security guards.

 

DBS spokeswoman Karen Ngui said that discussions went well and the investors left reassured that the bank is looking into their cases. DBS has said that it will take responsibility if the evidence shows that there was mis-selling.

 

A Mr Lin, 78, said that he cannot rest. 'My child said no need to think too much, I will support you,' he said, before breaking down. 'I can't sleep and my child said he does not want me to fall sick.' Mr Lin and his wife had invested $100,000 in Minibonds just three months ago in July. He had bought the Minibonds from Hong Leong Finance. Over at OCBC Securities, emotions ran high in the afternoon when a dozen investors went to file complaints and found the situation surreal.

 

A Mr Yap told BT the group was brought to a room where the heads of compliance, customer service and alternative investments met them for over two hours.

 

'It started off well until the head of compliance said OCBC Securities is just an order executor which doesn't give advice on whether products are suitable or not,' said Mr Yap, who invested more than $100,000 in Minibonds.

 

He said that voices were raised when some investors felt OCBC Securities was trying to distance itself from the selling.

 

A Mrs Lee, who was with the group, said: 'If they are not selling, and mis-selling can only come about if there is selling, so how can there be mis-selling? I found the whole thing weird,' said Mrs Lee, who bought Minibonds after attending sales briefings at OCBC Centre.

 

The Monetary Authority of Singapore has said that about 10,000 people bought a total of $639 million of the failed investment products.

[Kingcopa]

Moral of the story, dun sign when u are unsure.

[Silver_blade]

I believe something 'ok' will come out of this. But these 'investors' will still lose some (maybe a big chunk) of their money.

 

I know people who sells such products and their story is similar to some of those in this report. They have so many targets to meet, so many products to sell...all within a certain window. Some have resorted to provide limited info, give 'not-so-true' assurances...often using the 'status' of their bank as a guarantee of trust worthiness.

[Hamburger]

same as selling car...onli talk abt gd things n nvr bad things abt tat car. once u sign,all e best to u

[Speddevil]

When there is $ to be made, everybody happy. If things not going well, finger pointing erupted. Moral of the story must understand then signed. Sometime the consumer is to be blamed for their downfall due to greed. That y got con. After that go home cry suck thumb

[Speddevil]

no professional code & ethics

[Kingcopa]

Yup. Bank tok abt investigating.... BS!!! this is just to calm the crowd

[Speddevil]

that y got to make sure you fully understand and state all the terms black & white for contract. Once there is acceptance + offer= agreement irrevocable

[Speddevil]

just to pacify the rowdy crowd. Further, in singapore employment law,strike is illegal. Protestors will be caught and prosecuted in court.. So any unfair treatment, you got to resort to peaceful legal terms Lot of legal disclaimer, exclusion unless you can spot the loophole

[Silver_blade]

Well.....everyone was busy meeting target and making money. Their bosses don't really care how they meet their targets....as long as they can show good performance and w/o complaint....he/she is happy.

[Speddevil]

That's the things. Laid down code of practice juz for show.. When there is complaint the bosses juz shirk their responsibilities and roll all the head Those adviser can be sued by those consumer for breach of professional duties. U think the boss will help them? At the end it all boil down on how you conduct the sales

[Kingcopa]

Nothing to fight. U sign on the dotted line...... black n white. What is there to fight? unless u got beedeo showing the salemen conned u into buying this. Otherwise, what is there to fight? Sure lose case.

[Speddevil]

If can prove that they are mislead, misrepresentation then there will be cases to contest. But this is not easy feat

[Sabian]

When there is $ to be made, everybody happy. If things not going well, finger pointing erupted. Moral of the story must understand then signed. Sometime the consumer is to be blamed for their downfall due to greed. That y got con. After that go home cry suck thumb

 

Not everyone greedy lah...some old foggies kenna conned.

 

If MAS really want to investigate, they can see the typical FD conversion from transaction logs.

 

Frankly, if the freaking product is so good, the bank will keep for themselves or sell to their VIP clients.

 

If a product can come to mass mkt level, how good do you think it is? At best, it is a vanilla product, at worst...

[Sabian]

I believe something 'ok' will come out of this. But these 'investors' will still lose some (maybe a big chunk) of their money.

 

I know people who sells such products and their story is similar to some of those in this report. They have so many targets to meet, so many products to sell...all within a certain window. Some have resorted to provide limited info, give 'not-so-true' assurances...often using the 'status' of their bank as a guarantee of trust worthiness.

 

It will be quite a big chunk.

 

Banks have surrendered that kind of relationship and trust that existed during my parents time.

[Arowana1]

tink everything blown out of proportion and it is indeed sad to hear people losing their retirement funds. however, this is all part of the risk of putting ur money with someone rite?

 

lehman is a 156 years old establishment. credit rating aa or aaa at that time minibonds were sold?

 

compare to putting money into a bank. probably same credit rating.

 

who on earth would have known lehman will bankrupt? if bank belly up, all is gone except 20k rite?

 

tis is why gahmens around the world started to guarantee the money in banks. see the parallel?

 

it is nothing but pure bad luck! people will scream anything juz to get back their money. so would i but deep down, i know it is juz pure bad luck.

 

now im sweating over my cash with hsbc, which i put in to offset my housing loan. hsbc belly up, i oso lose rite?

[Tarzan666]

Really pitied the retirees..their life long savings all gone.

 

I feel sometimes the bank tellers are too much.

 

I accompanied my mum when she went to the bank to withdraw a sum of money to pay off renovation expenses etc.Then teller like see she got a sum of $$,asked my mum wanna invest in this or that,promote like wat....juz to earn their commission.

 

Lucky i was there,i say no..since the $$ inside was my mum retirement fund.

 

How can u sell products to pple who dont even know what they are buying...

[Sabian]

if hsbc belly up, does that mean your loan also boh pakeh?