Lehman Brothers Investors

[City100a]

I am totally confused by this Lehman Brothers Saga

here goes

 

many Lehman brothers invetors claim blur, got tricked

but in reality everything is written in black and white before you sign on the dotted line

some investors, yes those who dont understand written English but some of this group of investors are hardcore investors

 

i understand from brokers that during the span of the Lehman Brothers investment note, some years these same investors gotten more than 10% dividend each year

yet they want their 100% capital investment back

 

something i dont understand now is

if this is the case, can we go to MAS and try to our money back from all those failed investment

 

 

tell me I wrong please

this financial world is really screwed up, people are just so greedy

[Leslielai]

Basically its all fueled by greed.

 

Greedy + Naive people signed up with greedy + not so smart bank idiots who have no bloody idea what exactly they are selling.

 

Investment fails, first group of people makes noise.

 

 

[Drive_carcar]

Although the investors have signed and agreed that they understand the risks involved and they stand to loose everything they have put in should things go sour.

 

However, most of these investors where led to believe that LB is safe, and the reputation of LB before the saga was top notch. Therefore the risks involved in their estimation was much lower than they expected. How many of us really got the time to study in detail everything, when there are just too many variables and external / indirect factors involved that might put their investments at risk? So they would rely on their financial advisors, who are equally misled into thinking the risk of putting anything with LB is very low.

 

I personally do not think it's greed. It's very normal and supposedly prudent to put spare funds into good use by investing it somewhere. Just that they are all screwed by advisors, who also didn't know better. I mean how many of us would have forseen the bubble that is going to burst 5 years ago?

[Stary]

I am totally confused by this Lehman Brothers Saga

here goes

 

many Lehman brothers invetors claim blur, got tricked

but in reality everything is written in black and white before you sign on the dotted line

some investors, yes those who dont understand written English but some of this group of investors are hardcore investors

 

i understand from brokers that during the span of the Lehman Brothers investment note, some years these same investors gotten more than 10% dividend each year

yet they want their 100% capital investment back

 

something i dont understand now is

if this is the case, can we go to MAS and try to our money back from all those failed investment

 

 

tell me I wrong please

this financial world is really screwed up, people are just so greedy

 

This saga is not a simple thing like losing money in an investment.

 

From the advisors, to the bond structure itself, to the rating agency who rate these bonds...all gone wrong.

 

You need to be quite savvy in investment to understand what this whole thing is all about. Too complicated to explain to a layman.

 

Just put it this way....if it's a simple matter of some investors losing money...do you think MAS will come into the picture? Obviously they will not.

[Iisterry]

This has really been discussed ad nauseum and the MSM has already placed many spin doctors on the issue.

 

Greedy people who went in with eyes open and are now making noises only when the investments turn against them is what they would like to portray.

 

Anyone who has ever encountered a bank teller trying to push across products will know the exact scenario. Similarly to those whose aged relatives have encountered hard selling before.

 

The issue at hand is mis-representation.

 

Minibond Prospectus for reading.

 

The highly astute and savvy greedy investors who went in with eyes wide open.

 

 

...

 

Hi Starry, are you the same Starry from SgFunds?

 

Edited November 15, 2009 by Iisterry

[City100a]

This saga is not a simple thing like losing money in an investment.

 

From the advisors, to the bond structure itself, to the rating agency who rate these bonds...all gone wrong.

 

You need to be quite savvy in investment to understand what this whole thing is all about. Too complicated to explain to a layman.

 

Just put it this way....if it's a simple matter of some investors losing money...do you think MAS will come into the picture? Obviously they will not.

i dont see those people who bought LB and were getting 10+% dividend each year complaining that they are getting too much when most of us were getting less than 4% interest

 

furthermore, all investment have ups and downs even countries such as iceland so how can anybody gaurantee that LB cannot go bust

 

it is just not fair that only a certain group of people that is LB investors are compensated

 

when my dad bought Gemini (Jimini) fund many many years ago that was license by MAS but boss ran away why people like that were not compensated a single cent but big creditors were the first to get their money first

 

[Stary]

i dont see those people who bought LB and were getting 10+% dividend each year complaining that they are getting too much when most of us were getting less than 4% interest

 

furthermore, all investment have ups and downs even countries such as iceland so how can anybody gaurantee that LB cannot go bust

 

it is just not fair that only a certain group of people that is LB investors are compensated

 

when my dad bought Gemini (Jimini) fund many many years ago that was license by MAS but boss ran away why people like that were not compensated a single cent but big creditors were the first to get their money first

 

An investment has both upside and downside. It is up to the investor to assess whether he can take the risk of the downside in order to achieve the upside.

 

For LB, the upside is well understood. The problem is that the downside is totally mis-represented when it was first sold. It was sold as an extremely safe investment since they are bonds and not equities, and it has rating of AAA or whatever that shows that it is very safe. Everyone including a savvy investor could have believe in that and bought it.

 

So the mis-representation part is serious enough to raise an issue of integrity among banks.

 

 

 

[Nerdyfrog]

Yes, its the mis-representation. I am glad i did not take up the offer to invest during one of my regular bank trips and got engulfed in a sales pitch by a SYT.

 

Everyone says black and white, but even LAW needs lawyers to interprete them in court. Is our LAW not clear or elaborated enough?

Words do not have emotions. thats y we have conflicts even in forums when neither party meant harm.

 

End of the day, do people believe the black and white more or the person standing in front of them?

 

Sales people need to know what they are selling, Prudential pls educate your "financial advisors", sorry for the whining as i was caught by 1 of those that know nothing and keep pestering me to "invest" and "protect" myself on the streets.

 

I said TY to him and told him i know how to calculate my CPF minimum sum and medisave contribution rates. Pls tell me something more constructive or insider info.

[City100a]

An investment has both upside and downside. It is up to the investor to assess whether he can take the risk of the downside in order to achieve the upside.

 

For LB, the upside is well understood. The problem is that the downside is totally mis-represented when it was first sold. It was sold as an extremely safe investment since they are bonds and not equities, and it has rating of AAA or whatever that shows that it is very safe. Everyone including a savvy investor could have believe in that and bought it.

 

So the mis-representation part is serious enough to raise an issue of integrity among banks.

thank you for your explanation

now i do understand better