The greed of certain individuals has caused thousands of people their retirement funds… another crude reminder of Murphy’s Law.
SINGAPORE, Oct. 29 (Xinhua) — DBS Group has said its High Notes Five structured notes are worthless and most investors who bought the now-bankrupt Lehman Brothers-linked derivative would get nothing.
The Singapore-based bank notified investors that the redemption value of the notes has been calculated to be zero and the redemption date for the Singapore notes is expected around Nov. 3, according to a statement issued on its website on Tuesday.
“The credit event redemption amount for the notes has been calculated to zero, and therefore no amounts are due and payable to the holders of the notes,” DBS said in the notice.
About 10,000 retail investors in Singapore bought more than 500 million Singapore dollars (333 million U.S. dollars) of the products linked to Lehman, with about 1,400 of them pumping 103 million Singapore dollars in to DBS High Notes Five.
A DBS spokesman was quoted by Wednesday’s newspaper The Straits Times as saying, “Unfortunately the worst-case scenario has materialized and the majority of High Notes Five investors will not be receiving anything back.”
The bank’s notification to investors follow its statement on Oct.22 that the possibility of some investors is “likely to materialize.”
It also said last week that it will pay compensation of about 70 million to 80 million Singapore dollars in Singapore and Hong Kong, where it sold the similar series of notes. The compensation will go to people such as retirees who the bank feels were mis-sold the product.
Although retirement planning can be tricky, you can always count on a stockpile of liquid cash and some gold bars in the safe.
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azhan
