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A good read – an article from Todays online
What banks don’t disclose can hurt you
LOSSES in structured products fall into two categories: Small money and big money.
Small money
The banks have made a big show of solving the small-money cases.
Hong Leong Finance said it will compensate investors with a primary school education and aged 62 or older at the time of purchase. The company did not say how many of its customers fall into this narrow category.
DBS issued $100 million of High Notes 5 that are now worthless.
It will pay out $70 to $80 million to compensate customers for its mis-selling.
The $70m to $80m also includes customers in Hong Kong.
Hong Kong sales include products like Minibonds which a bank could buy back, hold to maturity and redeem at or near full value. It would cost the bank little or nothing.
Full article: http://business.asiaone.com/Business/My%2BMoney/Starting%2BOut/Investments%2BAnd%2BSavings/Story/A1Story20081029-96915.html
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Part of the article actually isn’t too accurate:
“Probably. Here is why: Linked notes invest in a 10/90 per cent mix of stock options and risky bonds called CDOs (collateralised debt obligations).”
ReplyThats something unknown to me too. Wonder where did writer get the information.
Another interesting article
Hidden risks in prospectuses
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Hi,
i would like to know to whom can i lodge a complaint for minibonds bought from lehman
thks
ReplyStanley,
the procedure is listed here:
http://www.martinlee.sg/how-to-file-a-dispute-for-structured-product-victims/
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