Tuesday, November 18, 2008

We Are Not Alone - Town Councils were also "Greedy"

Just like thousands of Singaporean investors who have lost money on failed Lehman-linked structured products, the Holland-Bukit Panjang Town Council may lose its S$8 million investment.

The town council invested 6.7 per cent of its sinking funds available for investment in Lehman Brothers' Minibond Notes, DBS High Notes 5 and Merrill Lynch's Jubilee Series 3 Notes.

Full article here :
Two town councils invested S$12m in Lehman-related structured products

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4 comments:

Anonymous said...

2 questions:
1. Town councils can invest up to 35% of their sinking fund in bonds, equities and unit trusts. However, some money has gone into highly risky structured products like minibonds and high notes which are not bonds, equities or unit trusts. Have these town councils breach the guidelines pertaining to investment policy? Who has given the approval to invest in such risky instruments that are not permitted in the guidelines?
2. Is there mis-selling or mis-representation to the town councils? If so, are the town councils going to lodge complaints? If not, why invest in these toxic products that can wipe up the entire investments that is funded by public money?

Anonymous said...

Some questions:
1. Town councils can invest up to 35% of the sinking fund in bonds, equities and unit trusts. However, structured products are not bonds, equities or unit trusts. How has given the approval to invest in such highly risky products? Are these town councils in breach of the guidelines pertaining to investing the public funds?

2. Are the affected town councils going to lodge complaints for mis-selling or misrepresentation? If not, then they have invested with their eyes wide open but why did they want to invest in such toxic products that could wipe out all the investment money that came from the HDB owners?

Anonymous said...

Acknowlegded that their eyes are fully opened will invite flogging by the citizens. Impossible to justify investments.

Acknowlegded that their eyes are not fully opened will force the government to admit that their national bank did mis-sell and MM is blind.

Either way, they are in deep shit.

Anonymous said...

Hello HNIG,

I have a suggestion.
Find out which Town council invest in DBS High Notes.
Check which HNIG member is under that town council.
Ask that member to write in to the town council or MP as a concerned residence.
The letter should specifically target about their investment in DBS high notes.

Wait for their reply and see if their reply will help in your causes.

Just a suggestion. Think about it.