Sunday, October 5, 2008

What are the banks intentions?

Even after the banks knew Lehman Brothers is in trouble, they never stopped promoting the minibonds to their clients.

Dah Sing Bank client, Ms Ng, bought HK$580,000 worth of Lehman Brothers product after she was told that this is a low risk investment that guarantees 100% of her principal. After extensive reports of Lehman Brother's bankrupcy, Ms Ng was told by the sales representative that when the product was promoted to her, they already knew Lehman Brothers was having troubles!

Another Mevas Bank customer who prefers to be unnamed has lost HK$4 million. She was told that the deadline for purchasing the minibonds is soon approaching and thought that her money went into a safe investments, like what she usually invests in. No detailed explanation was given to her on what products she bought and not until after she has signed all the forms, she was given the risk assessment form to fill out. "After I knew that Lehman Brothers went into bankrupcy, I asked that staff from the bank and she confirmed that my money was put into the most high-risked investments!" she said.

After reading these reports, one might think: What are the banks' intentions to sell these products to its customers - AFTER knowing that Lehman Brothers is in trouble???

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