Jump to content

HK banks to repay Lehman minibond investors


Recommended Posts

Let's see what Tharman and co does for Singaporeans. If DBS HK pays the Hongkongers back, will DBS SG do the same? One can argue that they are separate corporate entities under different country governance.

 

 

HK banks to repay Lehman minibond investors

 

HONG KONG: Hong Kong banks that sold minibonds linked to now-bankrupt Lehman Brothers have agreed to repay tens of thousands of investors up to 96.5 per cent of their investment, regulators said Sunday.

 

The 16 banks will buy back a large chunk of the financial products at the centre of a major scandal in Hong Kong, after they were sold to more than 40,000 investors before their value tanked when the US bank went bankrupt in 2008.

 

Investors ploughed a total of HK$15.7 billion ($2 billion) of their savings into minibonds and other complex products backed by Lehman Brothers.

 

Welcoming the deal the Securities and Futures Commission (SFC) and Hong Kong Monetary Authority said the agreement "will provide substantial recoveries for all customers" holding the products.

 

"This outcome would have been seen as impossible in the months following the collapse of Lehman and demonstrates the value of good regulators responding efficiently and robustly when things go wrong," SFC chief executive Martin Wheatley said in a statement.

 

The HKMA said investors would recover 85 to 96.5 per cent of their initial investment, up from 60 to 70 per cent in an earlier agreement.

 

The deal must first be approved by at least 75 per cent of noteholders at meetings expected to be held in May, receivers PricewaterhouseCoopers said in a statement on its website.

 

The move should draw a line under a saga over compensation for the thousands of investors -- many of them retirees -- who bought the minibonds on the understanding their money was safe.

 

Investors accused the banks of misselling the complex products, sparking a protracted tussle between customers, regulators and the banks over the minibonds buyback.

 

The 16 banks include Bank of China (Hong Kong), Bank of Communications Co. (Hong Kong) and the Bank of East Asia.

 

A spokesman for Hong Kong's government said: "The government is pleased with the high rate of recovery in the value of the Minibond collateral."

 

Former Wall Street behemoth Lehman Brothers collapsed in September 2008 under mountains of debt, leaving investors reeling and sending shockwave across the global financial system.

 

-AFP/wk

 

↡ Advertisement
Link to post
Share on other sites

Now this ia what I call world class governance and mind you they are not paid the kind of salaries our MAS dole out!

 

I am so sick and tired of hearing world class to justify the obscence pay stat boards get.........

[mad]

 

Link to post
Share on other sites

Now this ia what I call world class governance and mind you they are not paid the kind of salaries our MAS dole out!

 

I am so sick and tired of hearing world class to justify the obscence pay stat boards get.........

[mad]

 

I guess MAS can easily do it too if they printed more SGD to give back to Singaporean investors via local banks....

Link to post
Share on other sites

I guess MAS can easily do it too if they printed more SGD to give back to Singaporean investors via local banks....

 

Sure they can but they would rather see hundreds of old men and women scream and cry at speakers corner ....... At the end of it wat do they get.

Link to post
Share on other sites

recently the court in singapore just ruled that no compensation for all the literate investors.

 

compare the outcome in singapore and hong kong and you will notice the stark difference.

 

hong kong govt has more bite against the banks, singapore govt does not bite the banks

Link to post
Share on other sites

oh yeah...good news for jacky cheung??

 

he has to come out of retirement to perform in concerts again (including singapore) due to losing a lot during that saga.

 

so maybe now his concerts will be cancelled?

Link to post
Share on other sites

he has to come out of retirement to perform in concerts again (including singapore) due to losing a lot during that saga.

 

so maybe now his concerts will be cancelled?

 

ya very poor thing then...but this guy has character, stil as professional.

dun thk so, his concerts are super sold out, adding and adding.

i wont miss it! in HK, his concerts added and added until 20 sessions and stil pple cry more tickets!

this is wat i call star power. [cool]

Link to post
Share on other sites

recently the court in singapore just ruled that no compensation for all the literate investors.

 

compare the outcome in singapore and hong kong and you will notice the stark difference.

 

hong kong govt has more bite against the banks, singapore govt does not bite the banks

 

Sinkie side is ..."you sratch my butt...I scratch your back!"

 

"I tai chi to you ...you act blur"

 

Haven't you learnt?

 

See which back side you decide to mark a 'X" on when you go polling?

 

O.K? [laugh]

 

Link to post
Share on other sites

ya very poor thing then...but this guy has character, stil as professional.

dun thk so, his concerts are super sold out, adding and adding.

i wont miss it! in HK, his concerts added and added until 20 sessions and stil pple cry more tickets!

this is wat i call star power. [cool]

 

 

hehe of course. among the 4 heavenly kings he is the one most truly a singer. the rest are just a mix of good looks, good dancing, average singing skills

Link to post
Share on other sites

Guys, its nothing special.

 

The underlying CDOs are currently priced at approx 95% or so.

That is the reason why the banks are increasing their payout.

ie. The banks sell the minibond notes/CDOs on client's behalf and passes the money back to them. Reason for higher payout is cos prices have risen. Simple as that.

 

Its just packaging of the information.

Link to post
Share on other sites

recently the court in singapore just ruled that no compensation for all the literate investors.

 

compare the outcome in singapore and hong kong and you will notice the stark difference.

 

hong kong govt has more bite against the banks, singapore govt does not bite the banks

they do bite, but their own poor citizens.... :blink:[mad]

Link to post
Share on other sites

hehe of course. among the 4 heavenly kings he is the one most truly a singer. the rest are just a mix of good looks, good dancing, average singing skills

one of the other three H-Kings, Aaron Kuok, this guy can race his fast cars..... :D:D

↡ Advertisement
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...