atans1

What abt High Notes SM Goh?

In Banks, Temasek on 06/08/2010 at 5:22 am

The central bank has given DBS Bank an unprecedented public censure and instructed the 27%-owned Temasek bank to put aside S$230m  to cover its operational risks. Gd for MAS, and SM Goh (chairman of MAS), Tharman and Hng Kiang. The last two ministers also sit on MAS’ board.

There is another thing to be put right, SM, Tharman and Hng Kiang.

DBS’ Hong Kong unit recently agreed to pay out HK$651 million or about S$115 million to some clients who bought products linked to Lehman Brothers. As HK$1.3 billion of notes were sold, the compensation received works out to 49% of amount invested.

In S’pore, it sold a similar product, HN5 Notes. DBS issued, arranged and distributed HN5. A total of S$103.7 million worth of HN5 were sold to 1,083 retail clients between 30 March and 30 April 2007, according to a July 2009 MAS report.

The same report said DBS compensated investors S$7.8 million.

What this works out to is 7.5% of amount investments versus 49% in HK. Is this fair? Product is the same.

Force DBS to treat the S’porean investors fairly,  ministers. You have the moral authority.

If you do, I’m sure the compensated HN5 investors, family and friends will remember the good deed when the GE comes. It’s “win, win” except for DBS. And even then its a peanutty S$51m, 44% of amount paid to the HongKies.

BTW I did not buy any of the credit-linked notes that failed. Not that “greedy”.

Related post

http://atans1.wordpress.com/2010/07/15/dbs-another-case-of-discrimination-against-locals/

About these ads
  1. [...] IS DBS now a screaming buy? In banks on 17/09/2010 at 5:16 am Remember DBS  sold S’poreans and Honkies toxic notes and paid off Honkies but gave the finger to S’poreans? http://atans1.wordpress.com/2010/08/06/what-abt-high-notes-sm-goh/ [...]

  2. [...] absurd situation where DBS compensated HK investors, while giving the finger to S’poreans. http://atans1.wordpress.com/2010/08/06/what-abt-high-notes-sm-goh/So waz a national champ for? To screw [...]

  3. [...] potential investors may want to recall what DBS did to investors of its HN5 notes http://atans1.wordpress.com/2010/08/06/what-abt-high-notes-sm-goh/ ▶ No Responses /* 0) { jQuery('#comments').show('', change_location()); [...]

  4. We remember the inaction and nonchalant attitude of Goh Chok Tong and Lee Kuan Kew, and the disappearing act of Lee Hsien Loong

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 200 other followers

%d bloggers like this: