DBS High Notes 2 investors watching their investments plummet to less than a fifth of what it was initially worth said at a forum on Friday that they too were mis-led into purchasing the Lehman-linked product, and demanded a 100 per cent buy-back by the bank.
Senior DBS executives met investors of High Notes 2 - a Lehman-linked structured product - at two dialogues at Suntec City Convention Centre on Friday morning.

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100% buy-back means implicit guarantee for total captial that earned much-higher-than-normal 5% return . . . not realistic leh . . .

Don't waste time.

Apart from the illiterate eldery, most of you will get nothing or very little.

DBS and all other banks involved are doing nothing much but counselling work only.

I suggest together larger group of protesters and better still network and link up with those affected in Hong Kong.

Unity is strength.

Regards

In a letter dated 31 March 2008 sent by DBS regarding DBS High Notes, it was stated “.... it would take several underlying reference entities in the collateral to suffer Credit Events before investors suffer a loss to their principal amount."

In actual fact, it only requires one underlying reference entity to suffer a credit event to wipe out the whole principal amount, not several underlying reference entities. This is the case in the bankruptcy of Lehman Brothers which is a credit event to only one single reference entity.

Saying that it requires several reference entities to suffer credit events before any losses will be incurred gives investors the wrong impression that there is some kind of buffer and may have delayed them from selling the product and cutting their losses earlier.

Furthermore, since an official letter from DBS can get it so wrong with regards to the workings of the product, then it is reasonable to conclude that the Relationship Managers selling the product is no better at explaining the exact workings and risks of the product to customers when making the sales.

Thus, I do believe that all the investors of DBS High note series have a strong case against DBS if they wish to recoup all their money. I wish to stress that base my above analysis, every investors have a strong case regardless of your investment risk profile/appetite. The best course of action is for all the investors to negotiate with DBS or take other necessary actions collectively. I urge all investors to seek legal redress if DBS is not willing to accept full responsibility as I believe DBS is standing on shaky grounds as a result of the release of the said letter to the investors.

I wish to give DBS the benefit of the doubt and believe that this is only proof that DBS as an institution is clueless about how the product actually works and that it is not out to defraud the customers with wilful misrepresentation.

Did these investors share their high interest receipts wih the govt in the past??? Now that their investments have soured, they want the govt to compensate them.

When they received high interest payments, they must have boasted to their friends about they are a financial "genius".

The article says "Investors had been assured of a semi-annual payout of about 4 per cent for the first three and a half years and 5 per cent a year for the last 18 months".
At the time HN2 was sold, the fixed deposit interest rate was about 3% for 5 years as far I know. And you people say that the investors received high interest payments?
Do you people consider the risk/reward ratio justified? For 1% more, would you risk your entire capital upon first default or upon any 5 default out of a basket of 100 companies?
Not to mention that such risk was not even mentioned to the investors in the first place.

A paltry 5% return with the risk of 100% loss in principal. 5% interest considered high meh?

Stocks are more risky and yet the risk of 100% loss is much lower, especially if you choose a blue chip stock.

#5

You write like you know a lot but you know only peanuts. Yet, you think you are qualified to comment!

When and where have you read that the investors want the government to compensate them? They want the banks and financial institutions to do so, ignoramus.

4-5% per annum for interest is high?! For a tenure of 5 years?! Who do you know goes around 'boasting' that they received 5% interest for having their money held for 5 years, even if it is an FD?

Dear All,

Even though I am not affected, I suggest strongly that everyone of you who are affected must go to see your MPs.

Pressurise them and request that they put up this seemingly toxic produts are all out to cheat.

This is the time that all those affected must show solidarity and resolve to 'fight' to the very end against the banks.

Regards

Dear All,

Even though I am not affected, I suggest strongly that everyone of you who are affected must go to see your MPs.

Pressurise them and request that they put up this seemingly toxic produts which are all out to cheat, be debated in the next Parliament Meeting.

This is the time that all those affected must show solidarity and resolve to 'fight' to the very end against the banks.

Regards