Based on the latest updates provided by MAS and reported by the Straits Times today, 67 percent of the 5350 complaint cases (mis-selling of Minibond, DBS High Notes, Pinnacle, Jubilee) dealt with by the financial institutions have been offered compensation.
As at last month, $105 million worth of settlement was offered to 3600 of these investors. A quarter of these investors were offered full compensation.
For the record, over $660 million worth of Lehman-linked investments were sold to more than 10,000 investors.
Over in Hong Kong, it was reported that Bank of China Hong Kong (BOCHK) will buy back Lehman Minibond from all their customers at 60 percent of their cost. An extra 5 percent will be payable after Lehman’s liquidation while old-hand customers will receive an additional 10 percent.
Customers who purchased mini-bonds three to four years ago are eligible for a total of 80 percent rebate.
This means that all of Bank of China Hong Kong customers will get back amounts ranging from 60-80% of their original investment.
Peter Chan, chairman of the Lehman Brothers Victims Alliance, told the Global Times Monday that BOCHK’s proposal was unfair to most investors and that banks should pay back all of the capital invested.