Martin Lee @ Sg
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What Will Happen to my Lehman Minibond?

The minibond series by Lehman Brothers had been sold in Singapore for the last couple of years and some retail investors have purchased them. In the recent uncertainty facing Lehman Brothers, many of these investors are now wondering what will happen to their Lehman Minibonds investment.

First of all, recall that the Lehman Minibonds is not a normal bond in the normal sense of the word. It’s a structured note which exposes you to the default of the reference entitles and has assets backed by the underlying securities (which are different from the reference entities).

The money you gave to Lehman Brothers is used by them to purchase the underlying securities and enter into contracts for interest rate and/or currency swap. They also sell credit default swap on the reference entities.

The swap counterparty is Lehman Brothers Special Financing, Inc.

A few months ago, I was particularly concerned what the underlying securities of my Lehman Minibonds were. I wanted to know the extent they were affected by the current credit crisis and whether my principal would be affected. At that time, the worst case scenario I thought possible was that the underlying securities had enough credit default events which would result in a significant loss of capital (This is different from the default of the reference entities which was the one heavily marketed).

Well, I certainly didn’t factor the collapse of Lehman Brothers as one of the scenarios.

So, what will happen to the Lehman Minibonds if something happens to Lehman Brothers? There are a few possible scenarios.

1) There is no bailout and Lehman Brothers goes under

According to the pricing statement of the Minibonds, the notes might be redeemed early if the swap arrangements for the notes are terminated for any reason. This is likely to happen if Lehman Brother collapses.

The swap will terminate and the notes will redeemed early in an amount equal to the liquidation value of the underlying securities plus/minus the swap termination value. Lehman will have a claim for any swap termination value owing to it. The creditors of Lehman will have no direct claim to the assets of Minibond.

The liquidation value is an unknown but when I checked the market valuation of my Minibonds a few months ago, it had a face value of around 80% of the purchase price.

2) Lehman gets taken over by another party which assumes their Minibond Obligations

In a takeover, it is likely that the acquirer will have to assume all of Lehman’s obligations. They will then take over the swap counterparty role of the Minibonds. In this scenario, nothing would have changed for the Minibond holders.

3) Lehman gets taken over by another party which does not assume their Minibond Obligations

In the unlikely event that the acquirer does not take over the obligations of the Minibonds, the notes will be redeemed in a way similar that described in 1) above.

It will take some time for any takeover of Lehman Brothers to be completed as you can imagine the acquirer will have to look into all the obligations of Lehman Brothers, with the Minibonds just one very small component of it.

Added: You can contact the HSBC Institutional Trust Services for updates. The hotline is 62167449.

Added more updates: Minibonds Update

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905 comments
lioninvestor says 9 years ago

An overseas media agency would like to talk to an
affected minibond investor who has gone back into
investing again and listen to his personal experiences.

Anyone who is interested, please let me know and I will pass you his contact number.

Reply
    lioninvestor says 9 years ago

    With reference to my previous comment, you can reach him directly at 67347305.

    ” An overseas media agency would like to talk to an
    affected minibond investor who has gone back into
    investing again and listen to his personal experiences”

    Reply
lioninvestor says 10 years ago

For those who are interested in the investigation findings released by MAS yesterday, you can read more and download it here:

http://www.martinlee.sg/investigation-report-on-structured-products-selling/

Reply
United says 10 years ago

MIAG is hosting a seminar on Minibond on SAT, 21 March 2009 at 3 pm.

Find out more at http://www.miagsg.com and [email protected]

Reply
icanfeeltherain says 10 years ago

Hi lioninvestor

After one has lodged complaint with FIDREC and the outcome is unsatisfactory can one still go on to join the class action to pursue the matter further. Please advise urgently as my relative’s deadline for acceptance of bank’s settlement offer is due very soon. He is undecided whether to go to FIDREC or take up the class action now.

Agrieved relative

Reply
    lioninvestor says 10 years ago

    Hi icanfeeltherain,

    I think the FIDRec process might take at least a few months.

    The danger is that if the class action suit has already started by then, I am not so sure whether you can still join in. You can check with the organisers of the class action suit whether you can join them at a later stage and whether there are any implications.

    Reply
    5D says 10 years ago

    Dear icanfeeltherain,

    As suggested by Lion Investor, I am putting the answer under the new grouping of http://www.martinlee.sg/minibond-investors-action-group-legal-action/

    Thanks,

    5D

    Reply
Ryan says 10 years ago

Hi United,

U guys have done a brilliant job in coordinating this effort. Is time Singaporeans need to stand up for themselves and not be bullied by ppl who are suppose to represent us and serve us.

I realli hope we will succeed in sueing them, this may make many sgpreans sit up and notice that.. Its time for a little change.

Reply
United says 10 years ago

Minibond Investors Action Group has a new site at http://www.miagsg.com.

Keep our dream alive!

Reply
United says 10 years ago

To understand what is the right legal approach for legal redress, we must first understand the criteria the financial institutions used to evaluate our claim. The “Vulnerable Investors” criteria one set of criteria recommended by the government and MAS. If you fall into this category, lucky you, you will definitely be compensated.

The next category of investors that may be compensated – partly- will depend on the Financial Institution’s internal risk profile of the investors and whether the FI has an advisory relationship with you. Banks has a advisory relationship with their customers and that is why 75% of investors bought from banks are fully or partly compensated. The amount that they compensate you will be determined by your internal risk profiles, whether the selling process is above board, and the amount your invest.

For brokerage clients, the brokers claimed that they do not have an advisory relationship with you and it is also the reason why only 13% of investors bought through brokerage were compensated.

So if you are not compensated, it means that you probably fail in meeting the settlement criteria listed above. Now ask yourself this, what is the chance that you will be successful with your claim if you bring it to fidrec? What criteria will fidrec use to assess your claim? The chances are the same criteria mentioned above. I would opin that perhaps at most 10% of complainants may get compensated because you may be to prove that the risk profile produced by banks are not consistence with you risk profile in reality. FIs may also give some compensation for PR purpose.

Why is it that more money is lost in the share market, in business, in forex etc yet no one group complains like Minibond investors? The reason is simple, we feel that we are misled by these FIs as to the nature of the product and take unacceptable risk with our money. We are sold “defective” products, misleading product! And FIs owed us a fiduciary duty of care to ensure that the products they sold are not deceptive or misleading.

Now, instead of challenging the process of how the product is sold to us, our legal approach is now focusing on the product itself. Ask yourself this, why did you buy this product? Would you buy this product if you know the true nature and character of it?

I invite you to watch this video http://drop.io/mbond03# to find out what Minibond is.

After watch this video, ask yourself these questions
– why Minibond is NOT sold in the US or in Europe?
– why Minibond is sold only in Singapore, Hong Kong and Taiwan? aren’t US and Europe market must bigger than these little dragons?
– why a US lawyer willing to spend time and money to help HK Minibond investors to recover their money in the US against HSBC Trustee if it does not think it has a chance of winning?

For better understanding on what is structure product, settlement criteria, fidrec’s consideration etc in PLAIN langauge, visit http://mrwangsaysso.blogspot.com/ and read The Saga of Structure Notes.

Meanwhile, please consider your options. Should you go Fidrec or taking the legal route? or do both – sign up for Fidrec and sign up for legal, after all, they are not exclusive.

Only you have the power to decide. Use it wisely!

Reply
United says 10 years ago

Jasmin, S.F.Talib and all fellow Minibond Investors

All the details about the legal action are posted on http://minibondsg.blogspot.com

We may not have your email so you did not receive one personally. That is the reason we are posting here so that for those who did not receive a personal email, you still get the details.

We sent out about 500 emails last evening and another 700 emails by today. We have to send them out in batch of 45 names to prevent ISP label them as SPAMS.

Just remember that we are volunteers who spend their times, money and effort in organizing this event.

If you wish to volunteer your time, please contact us at [email protected]

In the meantimes, please go over to our website and inform your fellowed Minibond victims who have yet to receive the news.

Thank you

Reply
    S.F.Talib says 10 years ago

    united,
    I sincerelyapologised if you fill uncomfortable with my query of not receiving the email.
    I will certainly join the class suit and already contact the person in my group.
    I beleived the fees is affordable.
    here I also like to thanks you and people like you who volunteer their time and money to help others.
    aginst I apologised for any inconvenience I might cause earlier.

    Reply
Jasmin says 10 years ago

I did not receive any email detailing of the proposal for legal action too.
This saga is going nowhere at all.

Reply
Dan says 10 years ago

Hi United

I saw the link on http://minibondsg.blogspot.com on your proposal for legal action.

The FAQ is certainly is very comprehensive and answer most of my questions and the fee is affordable.

However, can you sum up how your legal approach is the Right approach for representative action?

Reply
United says 10 years ago

I refer to my earlier comments on Jan 19 that we are co-ordinating our effort for a legal redress for all Minibond investors.

You will be pleased to know that by this evening, those of you who have registered with us, an email detailing of our proposal for legal action for your decision.

You will find answers to:
1. Who are eligible for representative action
2. Who is our lawyer and what criteria we used to select him?
3. What is the legal approach and why is this the Right approach?
4. How much does it cost? etc. etc. etc.

We have also changed our email address for registration to [email protected] to reflect the fact that this proposal is for all minibond investors and who are not Fully compensated by FIs – for failing to meet some arbitrary settlement criteria.

So please check your mailbox and check update here at Lion Den!

Reply
    S.F.Talib says 10 years ago

    United,
    I had registered almost all with minibond group.
    I never received any email regarding this proposal.
    please sent me one as I am interested to take legal approach.

    Reply
takeitorleaveit says 10 years ago

Dear lioninvestor

My uncle is 65 yrs old, not investment-savvy, just retired, speaks and write English and invested 40K in minibond. He has just being offered partial compensation of about 25% of the total amount invested (comprising of 10,000 units buy-back by the bank) and the remaining 30,000 to be held by him till the residual value are make known by the bank later for redemption. He is given 2 weeks to accept or refuse the offer or to go to FIDREC for further redress with the possibility of getting a better judgement or worst still getting nothing and forgo the original offer from the bank. Of course his final course of action would be joining the class action and take a chance on the outcome. Really appreciate your advice or someone who is in a similar situation.

takeitorleaveit

Reply
    lioninvestor says 10 years ago

    Hi takeitorleaveit,

    You will have to consider the circumstances of how the product was sold to your uncle and what case he has. Does he fall into the vulnerable category and was he mis-sold the product?

    If you go to FIDRec, do you think they will give a judgement of less than $10k? What are the chances of them giving a judgement of zero to your uncle?

    If you think he has a fair chance of getting more (or at least the same) than what he has been offered now, it might be worthwhile to go for the FIDRec option.

    The legal route might be too much of a hassle for the amount at stake. Let’s say the courts grant 50% in the final judgement. After deducting for legal costs (and the time spent), your upside is not much.

    Unfortunately, it is choosing between the devil and the red sea. Ultimately, this is a personal decision that your uncle will have to make.

    Reply
S.F.Talib says 10 years ago

lioninvestor,
thank you for your comforting reply.
sincerely hope you can fix the problem.
I, like Choo will like to join the class suit.
will go to website as suggested.
Thanks agin to all especially you,Lioninvestor.

Reply
tan says 10 years ago

testing

Reply
choo says 10 years ago

Hi

I interested to join the class suit against financial institution(HL).
How to contact you guys.

My detail: HL mini bond series 9.

Please advise.

Choo

Reply
Jasmin says 10 years ago

S.F.Talib,
I check my letter box daily and still nothing from FI.

Henry,
Lehman Bro already bankrupt and who will pay us money?

Reply
    Hopeful says 10 years ago

    Actually Lehman Bro has been gone Bankrupt. They only filed for Bankrucy Protection under Chap 11. The company I work for (its US parent) also filed for Chap 11 for 3 years already. We are still operating.

    Reply
Henry says 10 years ago

Hi LionInvestor,

Does it mean that those who complained but got no compensation now, will get back part or all of their money when the MB matured? If this is the case, the FI must have done their homework and price in the risks when they offer compensation and it should be lower. Once you accepted the compensation, it’s as good as the FI buy over from you and wait for maturity then they collect the money which is higher than what they offer you. Plse share your opinion.

Reply
    lioninvestor says 10 years ago

    Henry,

    Those without any settlement will only be getting back money after all the legal issues have been settled (which might take a few years).

    Even then, the amount is unknown.

    Reply
S.F.Talib says 10 years ago

Jasmin,
I am in the same boat with you.
I am anxious,frustated and disapointed.
and today I read in CNA,ther is going to be class suit against financial institution.
lately I did not receive any email from lion investor.
Please update this website as this is only my source of info.
thanks to all who update news in this website.

Reply
    choo says 10 years ago

    Hi

    I interested to join the class suit against financial institution(HL).
    What to contact you guys.

    My detail: HL mini bond series 9.

    Please advise.

    Choo

    Reply
    lioninvestor says 10 years ago

    Hi Talib,

    Lately, I have been having some issues with the email delivery system that I have been using. Still trying to sort that out.

    Updates are also slow because there is not much news coming.

    But if there is anything important, I will try my best to update the site.

    Reply
Jasmin says 10 years ago

The problem is I receive no news at all. Anybody in the same boat as me? Is this (long waiting) going to be good news or bad news?

Reply
Intheknow says 10 years ago

Hi Cheryl,

They will probably offer you a settlement amount.

My advice to you is to work out a table of your response to varying amounts of compensation.

E.g.

50% – Accept

Cheers,
Intheknow

Reply
Cheryl Ong says 10 years ago

Hi,

My FI called me to meet them next Friday to let me know their decision on my complain on my Mini Bond.

I do not know what to expect. Has anyone been to this type of meeting? Any idea what’s going to happen? Any advice from anyone?

Reply
United says 10 years ago

Jesmin

You may want to register with [email protected]. The ospl group is starting a a series of activities to co-ordinate effort to take legal action to FIs.

Reply
jessie wong says 10 years ago

hi lioninvestor,

Mine is minibond series 2, I just received rejection letter from abn
I hv done all the procedure advised. But in the end still get zero
I am now lost which direction should go. Can anyone advise me?

Reply
    lioninvestor says 10 years ago

    Hi Jessie,

    Since the first step didn’t work for you, you might want to file a case with FIRrec.

    At the same time, might want to link up with the investors who are considering legal action.

    Reply
      jessie wong says 10 years ago

      thanks for the reply.
      FIRrec only handled amt up to 75k mine is 200k(my life saving)
      thinking of filing with FIRrec, if on result the last resort then
      think of class action. To think of class action don’t know how much money got to pay. Very frustrating.

      Reply
        SWN says 10 years ago

        Hi Jessie,

        To join the class action, you can try lawyer Leonard Loo’s group. I understand that the legal cost he quoted is around $5k per investor.

        Reply
        lioninvestor says 10 years ago

        Hi Jessie,

        SIAS said they will be offering help (including advice from their legal team) to affected investors. So, you could try contacting them.

        For legal action, you can link up with the other investors:

        http://docs.google.com/Doc?id=dcqjz7c8_50c4ddcp2w

        Reply
Jasmin says 10 years ago

Mine is series 2 and filed a complaint last year.
I have yet to receive news from Maybank at all.

Reply
5D says 10 years ago

Since the announcement in mid January, thousands of victims should be getting their notification of compensation or not letter over the next few weeks. Particularly for those who get compensated for less than 50%, they might have a difficult time to guage whether to accept the offer or not.

So far, there are suggestions on rule of thumbs such as accept if it is over 50%. I think for people who are getting offer of say 25%, it would be a really difficult decision for them to make.

Meaning 4141 people filed their complaints. But, for the rest of the 4,000 who did not complain, they might be getting more (or less, like zero) money from the liquidation two years from now? Keep in mind that if the liquidation runs into any further obstacles, 2 years might becomes 3.5 year and that is the same as held to maturity. And, at maturity, if none of the six reference entities went belly up and not a lot of the 150 underlying securities went belly up, would people get 100% back?

Another way of phrasing the question is: the offer from the FI, are they just buy backs? If so, wouldn’t they lower the value further to create a safety margin for them before determining the offer price? If so, would those 4,000 people who did not complain end up with more money back than those who complained!?!? I guess time will tell.

Advice from anyone?

Reply
Hellster says 10 years ago

Hi Lioninvestor,

How about those mini bond holders who did not make any complaints to their respective FIs or banks, so will they be offered such compensation or nothing at all. So far I have not make any complains and only response I receive are from HSBS trustee who only send me letters informing of e notes default in interest payment n last one was e General Electric securing e note. So shall I also made a complain in order to have some compensation like others? Any suggest please and Thanks a lot.

Reply
    lioninvestor says 10 years ago

    Hi Hellster,

    As things stand now, if you don’t file a dispute, nothing will be offered to you from your financial institution.

    You will have to wait a couple of years for the Minibond to be liquidated before knowing how much you will be getting back.

    If you file a dispute, at least you have the option of accepting or rejecting their offer. Rejecting their offer means status quo as it is now.

    You might want to approach SIAS for advice:

    http://www.martinlee.sg/sias-to-offer-advice-to-structured-product-investors/

    Reply
      Hellster says 10 years ago

      Thanks for the advice. Already file my complains accordingly in which OCBC Securities have agreed to see me on 10 Feb 09 at 2.30 pm while May Bank said that they will inform me of an arranged date later.

      However, recently I received a letter from HSBS trustee stating that our securities, mini series 3 and 7 have been secured by General Electric Capital Corporation instead of Beryl Finance Limited. What these changes would contribute to our notes. Anyone to share with please?

      Reply
Hellster says 10 years ago

Have learnt from a relative that his brokerage firm, a private prominent finance company (Name of company told not to be disclosed) has agreed to pay or so call buy back 50% of his mini bond series 9 at full price, while the other 50% will remain in his account on a wait n see how status. Any advise on this? Other FIs or banks doing likewise for clients with or without formal complaints. Anyone got further updates to share please.

Reply
Ryan says 10 years ago

Would they be looking into our stock portfoilio and determine how sophiscated we are in investing our money?

Can anyone who have gone for the meeting after the interview please kindly advice.Thank You

Reply
scaredstiff says 10 years ago

I got a call yesterday from the FI to attend a meeting with their officer in two weeks’ time. It has been 4 months since I lodged complaint. I am apprehensive about the meeting – are they going to inform me that I would not be getting any compensation or are they offering me partial compensation. Why can’t they inform me the outcome via post and why was I asked to bring along my CDP account slip?

Reply
    lioninvestor says 10 years ago

    CDP slip? Do they have a right to even see it?

    Reply
    lioninvestor says 10 years ago

    I just realised one possible reason the CDP statement might be required is to verify that the Minibond is still in the account.

    Reply
Steve Tan says 10 years ago

Hi sorry for the late responds. After much consideration, I and my mum had went to the hong leong to file for the application. Had also received their written mail confirming the receiving of ou application.

The only good thing for me and my mum is that it is a joint account purchased from Hong Leong, other than that there is none. Currently I and my mum is on the waiting list. Crossing my fingers now as I and my mum have not gone for the interview yet.

Reply
United says 10 years ago

We need to provide Series 7 and 8 brochure, prospectus and pricing statements to lawyer.

If you have a copy of these documents, please forward a softcopy to [email protected]

Thanks and do not lose heart!

Reply
Lost-in-America says 10 years ago

Hi Not Giving Up, better to mentally write it off first. I don’t have much hope from the ML Jubilee experience. After unwind, there was still many million$ left but the unwind process and the complicated formula says they have to use that $ to compensate for their losses? So the balance is -ve value (means we still owe them $).
Last week I re’cd a letter from HSBC also talking about the unwinding for MB and they also not sure if got any $ left for the holders like me.
This whole scam is very ridiculous, there are some built in mechanisms to protect them. There is no transparency. I cannot understand after reading the prospectus. So don’t be caught by surprise. I sold my MS Pinnacle last week, no more confidence, bite the pain….MS and GS may be the next one to kaput. I read from a US website that their cost of insurance are rank #1 and 2 among all banks, means their default risk is high. GE is also in deep shit I think, looking at their ridiculous share price. There is no transparency, I know some of you will not agree but it’s ok. Time will tell whether I read it correctly. I rather take the loss and mentally write off to have a better night of sleep and enjoy my life for the next 2 years.

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United says 10 years ago

Hi all

We are a group that representing investors who have bought the Minibond from brokerage firms.

We are seeking legal actions against the brokerage firms for the injustice. As compare to the banks where 75% received compensation, only a 13% received compensation from brokerage.

If you are interested to join in to our action for redress, please register your interest by dropping an email to

[email protected]

We also need your help to send to us the following:

1. any marketing material that was sent to you to entice you to subscribe to Minibond by the brokerage firms. It may be in the form of email, marketing material, internal circulation, representation written or oral by Remiser, brokerage officers etc.

2. Base prospectus, pricing statements, brochures of Minibond from Series 1 to 10 to the above mailbox.

Once you leave your name with us, we will send you a questionaire to find out the circumstanes how you were misled into buying the product.

Lastly, please help to publicize the above info to all who have the misfortune to buy Minibond from brokerage [OSPL, UOBKH, CIMB, PHILLIP Sec] and penalize from compensation vis a vis the commercial banks.

Just image, if a toxic product is advertised in the media available for sales at various enterprises and you happen to buy from the brokerages, you are penalized from compensation.

Again, please help us to publicized this notice, drop us your email and let us move forward to seek justice.

Reply
Bad dream says 10 years ago

My mum is 77, Chinese speaking, always using FD before, first time in this type of “minibond investment”, raised complaint and interviewed in Oct 08 but have not heard a squeak to this date. She did not invest throught a stock broking firm.

So what are we talking about? I am so disillusioned and skeptical!

Reply
    lioninvestor says 10 years ago

    Hi Bad Dream,

    Even if the appeal was unsuccessful, you should receive a letter with the result. I believe you will be getting a letter soon.

    Please keep us posted of the outcome.

    Reply
    Hopeful says 10 years ago

    Did she bought MB from the same FI she put FD? Call the officer who did the interview to follow up. May be there is too many cases go under the paper tray and year end holiday.

    Reply
Not_givingup says 10 years ago

I have received similar info from HSBC Trust.
Specifically, the letters says they understand that

Series 2: Series 2008-16 US$78 400 000 Synthetic Portfolio Notes due 2012 issued by Beryl Finance Limited (ISIN Code: XS0382664620) is secured by:

US$78 400 000 in principal amount of Floating Rate Notes due 2012 issued by General Electric Capital Corporation (ISIN Code: XS0266384022)

Series 3: Series 2008-17 US$108 750 000 Synthetic Portfolio Notes due 2012 issued by Beryl Finance Limited (ISIN Code: XS0382664976) is secured by:

US$108 750 000 in principal amount of Floating Rate Notes due 2012 issued by General Electric Capital Corporation (ISIN Code: US36962GZ490)

However, the letters also says the information is obtain from doc provided by 3rd party and they are not able to confirm/verify the information.

Based on information above, can anyone help to tell/comment on what’s the situation with these series?

Reply
    lioninvestor says 10 years ago

    Hi not_givingup,

    If indeed these portfolio notes are secured by notes issued by GE (and the underlying swaps have been terminated), then I would be more confident of the minibond having some residue value.

    Reply
Lost-in-America says 10 years ago

I suspect the 58% are mostly vulnerable group as mentioned in the press release “ALMOST ALL low education, low income….are compensated” and almost are are walk-in cases into banks, AMB, HL, Maybank. Ya I think it’s for show only to repair the damage to their reputation. So far the broking groups OCBC, UOBKH I know, nobody got compensated.

Reply
Ryan says 10 years ago

Frankly speaking, i do not trust this announcement by MAS at all. This could be just for public relations purposes to repair the FIs reputation. From what we have heard so far is outright rejection of compensation but now 58% will be compensated..Until we have got our compensation I still doubt it.

Reply
richard says 10 years ago

It is conveyed by HSBC trustee that for Mini Bond S2 & 3, the underlying securities of Beryl is in turn principally secured by Floating Rate Notes due 2012 issued by General Electric Capital Corporation.

If the FRN (which I understand is kinda bond) is not in default and paying dividend, in the absence of Lehman Bros , where is the dividend going to ?.

Reply
    lioninvestor says 10 years ago

    Hi Richard,

    where did you get the part on General Electric from?

    Reply
coldwind says 10 years ago

5Don 17 Jan 2009 at 12:57 am

What would do next if your outcome is negative – FIDrEC or class action?

Reply
5D says 10 years ago

I wrote this comment regarding the new MAS announcement and the 58% get compensation article in Strait Times which I think is worth publishing here:

http://www.mas.gov.sg/news_room/press_releases/2009/MAS_Provides_Updates_on_Complaints_Resolution.html

On an overall basis, this certainly exceeded my expectation. More important to the monetary compensation is the restore to some extent of people’s confidence in the checks and balances in our financial system. I don’t even know my own outcome so my comments are impartial.

I would like to compliment MAS and the Financial Institutions for their efforts. And the independent persons who oversee the complaint handling process. And, last but not least, Mr. TAN Kin Lian (and many supporting volunteers) for taking the leadership and devoting his time to lead the efforts, rain or shine. Without his leadership and the support, I am sure we would not have gotten over 5,000 people going forward with the complaint process.

In a massive process like this, unfortunately not everyone will get full satisfaction. Now that I have confidence in the complaint handling process, I hope MAS and the Financial Institutions will continue the same spirit in the FIDReC process – particularly in working with the FI’s to raise the $50,000 FIDReC limit. Else I think we will end up with a lot of the remaining cases in court. Or we might have people losing more than $50,000 still going through the FIDReC process to get their case heard before moving on to the court system.

I setup my HK5D alias to challenge Singapore to be faster in this process. Singapore clearly won. And, I promised that I would change my alias to SG5D after Singapore won.

P.S. I just checked – SG5D has been taken. So, SG is indeed 5D after all 🙂

Reply
    lioninvestor says 10 years ago

    Hi HK5D,

    I have started a new post on this:

    http://www.martinlee.sg/updates-on-structured-notes-compensation/

    Yes, it’s good that quite a number have received some form of compensation, in particularly from the 3 finance institutions, Hong Leong, Maybank and ABN.

    It’s a bit sad though that those who bought through stock brokers would have not much chances of getting anything back.

    Reply
lioninvestor says 10 years ago

HK lawmakers slam HSBC role in Lehman bonds sale

http://finance.yahoo.com/news/HK-lawmakers-slam-HSBC-role-apf-13933171.html

Reply
Euy says 10 years ago

Dear 5Don 29 Dec 2008 at 11:17 pm

Can someone help translate the contents to the link for the benefit of those that do not understand Chinese. Thanks.

Reply
5D says 10 years ago

This report just came out in Hong Kong (in Chinese). Head line says the Banking Association estimated the some of the MINIBOND valuation exceeds 60% as of end of NOV. And, they included the breakdown by series in the details.

There is no exact match of the series between HK and SG. However, this probably provides us a feel.

See link below:

http://www.881903.com/page/zh-tw/newsdetail.aspx?itemid=85646

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VSL says 10 years ago

To All Minibond noteholders:-

Pls sign up and attend the free seminar on follow-up activities regarding Minibond. Go to http://minibond.eventbrite.com/ for the details and register. There are only about 40 seats left.

Lawyer Leonard Loo will give an outline of his legal plan. Ask him all your doubts about legal action.

As angrymum and Jasmin said above, I am of the opinion that come Jan-09 further bad news will be rolled out en-masse. As expected, the dissatisfied investors will be told to go to FIDREC as it is free. FIDREC will take another 6 mths and will probably come out negative as well. The next course of action will be legal, as we will have no other options.

For those who can wait it out, I suggest they DO NOT commit on legal action initially. Notwithstanding this, we should still attend this free seminar to understand the legal process and pitfalls. Tks.

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Jasmin says 10 years ago

What if there is no compensation after some months (Oct till mid Jan) of waiting?
Do not be surprise that this might be the outcome awaiting.

I dread of going through legal actions because there is no guarantee that we will recover something but it is confirmed we have to pay legal fees.

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angrymum says 10 years ago

Are we all waiting for the bomb-shell by mid-January. I dread to receive news that we would be compensated only 10 – 20% of our investmnent… what then, if this scenario unfold. What’s our next course of action.

angrymum

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