atans1

DBS screws its customers again, and again?

In Banks on 27/08/2012 at 7:26 am

A few years ago, DBS sold HN5 Notes to its valued Treasure customers, blowing the buyers to kingdom come and discriminated against locals when it came to compensation.

So when early in 2011, when it started pushing yuan deposits and other investments linked to the yuan to its customers, I tot “No, not again”. By early May 2011, it had sold more than 27 billion yuan (S$5.2 billion) of investments linked to the Chinese currency to wealthy investors here it boasted.

Well 2011 wasa not a gd year for the yuan, and 2012 has been a disaster. 

While most economists expect the renminbi will stay flat or rise slightly over the next year, financial markets tell a different story.

In the non-deliverable forward market, where traders place bets on the future exchange rate, the yuan or renminbi is priced to fall 1.3 per cent against the dollar over the next 12 months.

Some experts say the decline will be much more substantial. Jim Walker, an economist who predicted the 1997 Asian financial crisis, forecasts a 5 per cent depreciation over the next year because “corporate financials in China are deteriorating dramatically. Extract from last week’s FT.

And we know S$ has been appreciating vis-a-vis the US$.

 Interestingly OCBC, Singapore’s second-biggest bank, was not aggressively promoting offshore yuan deposits to Singapore customers due to the risk of near-term losses as the local currency is likely to appreciate at a faster pace.

“We’re pretty cautious with regard to offshore RMB business in terms of deposits. For a Singaporean, we think it is not very wise,” CEO David Conner said at an earnings briefing in May 2011.  

“Our forecast has always been that the Singapore dollar will appreciate faster than the renminbi so we are not pushing that hard with our customers.”
 
OCBC’s comments came shortly after aforesaid boast by DBS. So it looks like although Rajan the FT Indian who blew up the “treasured’ clients moved on, the culture of screwing clients still remains?
 
(BTW, O’Connor is the kind of ang moh FT, we don’t get enough of. We get trashy FTs like SGX’s CEO (ang moh) and president (Indian Indian) who talk the talk of attracting IPOs but who underperform.)
 
And DBS is now using rocket science to make customers spend and spend  http://www.bbc.co.uk/news/business-19286426. More “treasures’ getting shafted?
 
 
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  1. well I hope those who were stung by the DBS High Notes 5 & lost their hard-earned retirement savings (average $75k per person) will remember how they were treated by DBS until the day they die and impress on eveyone they know never ever to use this bank. Remember DBS, there are thousands of us still around.

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