Hong Kong Banks to Buy Back Lehman Notes as Buyers Demand More

Discussion in 'Wall St. News' started by ASusilovic, Jul 22, 2009.

  1. July 23 (Bloomberg) -- Hong Kong banks offered to pay at least 60 cents on the dollar to investors in notes linked to failed Lehman Brothers Holdings Inc., a move aimed at ending a 10-month dispute that sparked street protests across the city. Some investors said that’s not enough.

    The total compensation, announced yesterday by the Hong Kong Monetary Authority and the Securities and Futures Commission at a televised press conference, would amount to about HK$6.3 billion ($813 million).

    That’s “not reasonable,” Peter Chan, chairman of the Allied Victims of Lehman Products, said in a phone interview. “I can’t agree, and won’t accept the settlement plan as it’s not acceptable and fair to us. How can the SFC let the banks get away with it so easily?”

    Banks that sold an estimated $1.8 billion of the so-called Lehman minibonds are seeking to end a controversy that led to protests outside lenders’ offices and forced them to change the way they sell investment products to individuals. Hong Kong’s government said the settlement is fair and pledged to strengthen investor protection.

    “This is a reasonable compromise,” said Peter Yuen, a partner at law firm Freshfields in Hong Kong. “To go for 100 percent compensation will be a long fought battle and probably unlikely to beat the current offer.” Freshfields


    http://www.bloomberg.com/apps/news?pid=20601087&sid=aWqfyXa6jHWk

    Freshfields ? Unlikely to beat the current offer ? LOL ! Hongkong investors shall go for 110 % !


    ....A Hong Kong Monetary Authority probe has found evidence that banks sold notes to elderly, poorly educated and mentally ill people. And investors have held almost nine months of daily street protests claiming the securities were marketed as low risk....
     
  2. Authority probe has found evidence that banks sold notes to elderly, poorly educated and mentally ill people

    Whoa!!! Minimum investment 5k. How did the elderly, poorly educated and mentally ill get 5k to invest, esp in China? Maybe they got $5 dollars from 1k Chinese and sold 1 bond. That's doable or as they say in China ""Bite the wax tadpole" when it comes to risk.
     
  3. lakai

    lakai

    You're an idiot. We're not talking mainland china broke ass 3rd world country Chinese. We're talking middle class, Save everything they make and retire with more than enough money to survive for the rest of their lives Chinese. People at this level easily make 40-50k USD per year and can easily save 60% of it.
     
  4. "bite the wax tadpole..."

    What does it mean, and what is it's origin?

    I like it already, without even knowing...