Oops No Compensation Now

With a wave of the hand, compensation is no more perhaps? MAS looked good as it made DBS do something about supposed mis-selling. DBS nodded its head but soon after, shrugged its shoulders and said that the Minibonds are worth less than toilet paper.

Sounds like a great opportunity to have a toilet roll protest at Speakers’ Corner. Just buy lots of house brand toilet paper, or the those that you buy from the SAF emart, and line it ala anti-Odex protest the other time. The great toilet paper fall in to symbolise the great DBS disappointing Minibond fallout. One could dump the toilet paper on Sunday at a specific DBS branch as protest so that on Monday, staff reporting for work would face a mountain of toilet paper, but  the culprits face the risk of being fined for littering.

Singapore DBS says Lehman-linked notes worthless

SINGAPORE (AP) — Singapore’s DBS Group said 103 million Singapore dollars ($68 million) of structured notes linked to bankrupt U.S. brokerage Lehman Brothers Holdings are now worthless.

That’s about a quarter of the amount of Lehman-linked securities sold to clients in Singapore and Hong Kong.

The notes, known as High Notes 5, were linked to the risk of a bankruptcy occurring to one of the reference entities, such as Lehman, DBS said in a letter to 1,004 investors posted on its Web site Tuesday. DBS said it valued the notes by calculating, “among other factors, the price of the reference obligation of the reference entity.”

The letter did not specify what the reference obligation was.

DBS said last week that 4,700 clients in Singapore and Hong Kong bought SG$360 million ($239 million) in Lehman-linked structured notes from the bank.

In Hong Kong, the total outstanding amount of the Lehman-linked products sold by all banks is 20.2 billion Hong Kong dollars ($2.6 billion) while Singapore investors bought around $400 million.

DBS said last week it would pay up to SG$80 million ($53 million) in compensation to investors who received poor service, but Tuesday’s letter did say anything about this. Singaporean investors, including retirees, have said bank officials did not properly explain the nature of the notes.


One response

  1. Pingback: The Singapore Daily » Blog Archive » Daily SG: 31 Oct 2008

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