DBS’ Hong Kong unit has agreed to pay out $651 million Hong Kong dollars 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 50% 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$7.8 million.
What this works out to is 7.5% of amount investments. “Peanuts” as Mrs SM could have said, but didn’t.
Some MP should ask in Parly SM Goh, chairman of MAS, why did DBS screw its HN5 investors, esp as DBS said in a statement the settlement was made in the interests of its relationship with customers and of the Hong Kong financial system. So the peanuts paid to S’poreans was in the interests of its relationship with customers and of the S’pore financial system? Or it gives F#$%ALL to its relationship with S’porean customers and of the S’pore financial system?