Addendum (16.10.08): A second version of this was printed by My Paper on 16.10.08 ( see below in italics)
October 12, 2008
Dear Editor,
I applaud Mr. Tan Kin Lian, the ex-CEO of NTUC Income, for helping to organize the obviously distraught holders of the many structured financial products. (see link here) These credit linked securities are now in real danger of vanishing into thin air.
Thousands of Singaporeans, many of whom are retirees, had sunk their complete life savings into the Lehman Minibonds, DBS High Notes, Morgan Stanley Pinnacle Notes and Merrill Lynch Jubilee Notes. They are justified in being upset that they may see little or none of their monies again. ( see links here & here)
Their frustrations are multiplied when these investors hear reports that DBS Hong Kong might pay full compensation to Lehman Minibond investors there if they can prove they were misled during the sales process. It is natural that they expect DBS to act likewise in Singapore, its home base.
For the sake of these people, let us get beyond the blame game about why they are in such dire straits as a result of buying products that they were not 100% certain about. Buzzwords like “caveat emptor”- buyer aware, are meaningless to them now when they face a bleak future without any financial resource. They need real help- not just words.
How is the government or its elected representatives going to help these Singaporeans?
Doing nothing is hardly an option.
Dr.Huang Shoou Chyuan
PS: Since submission of this letter to the forum editor, DBS has finally come out to take responsibility if there is any evidence of mis-selling here in Singapore. It will be on a case-by-case basis. This letter was not published.
16.10.08 :Second version of this letter (Published in My Paper 16.10.08) ( just for the records)
Dear Editor,
I applaud Mr. Tan Kin Lian, the ex-CEO of NTUC Income, for stepping forward to champion the cause of desperate holders of the many structured financial products.
Thousands of Singaporeans, many of whom are retirees, had sunk their complete life savings into the Lehman Minibonds, DBS High Notes, Morgan Stanley Pinnacle Notes and Merrill Lynch Jubilee Notes. Their desperation is understandable as these credit linked securities are now in imminent danger of vanishing into thin air.
Furthermore these investors feel that they have been neglected by the authorities. The banks who sold these products to them, were also deemed extremely slow in initiating help. How could investors think otherwise when it was many days after DBS Hong Kong had offered to pay full compensation to Lehman Minibond investors there (if they could prove there was mis-selling) before DBS Singapore offered the same here? Are Singaporeans less worthy of help? Is this just poor PR or a case of double standards?
For those of us who are fortunate not to have invested in these products, let us not be smug and judgmental. Let us get beyond the blame game about why they are in such dire straits as a result of buying products that they were not 100% certain about. Buzzwords like “caveat emptor”- buyer aware, are meaningless to them now when they face a bleak future without any financial resource. They need real help- not just words.
How is the government and its elected representatives going to help these Singaporeans?
Doing nothing is not an option.
Dr.Huang Shoou Chyuan
