It was DBS' own $$$ that was skimmed off, NOT customers'. Don't be fooled by SPH

[Confuseous]

I tot DBS was being generous in quickly compensating its customers until I read this in ST’s Forum. It reminded me (a trained lawyer who did a lot of banking legal work) that it was DBS that lost money, not the affected customers, “When someone deposits money with a bank, he is in effect lending money to it. Property rights to the money pass to the bank. In return, the bank owes its customer a debt. At that point, any money stolen or pilfered from the bank is its money, not its customer’s,” SMU academic.

- http://atans1.wordpress.com/2012/01/10/when-sph-dbs-team-up-well-spore-inc-can-be-awesome/

 

[Cruxx]

Banking 101: when you deposit $ into a bank, the bank is your debtor, not your bailee.

 

[zhihau]

Banking 101: when you deposit $ into a bank, the bank is your debtor, not your bailee.

oh... does that mean i should charge the bank interest?

 

[Thick Face Black Heart]

oh... does that mean i should charge the bank interest?

You ARE charging the bank interest. However, unlike other debtor-creditor relations, the interest RATE is determined by the debtor, not the creditor (YOU). The debtor can set a 0.1% interest rate. You can take it or leave it or shove it, in their terms.

 

[Thick Face Black Heart]

Anyway, my reply to Zhihau was besides the point.

The lawyer ought to disbar himself. The relation between a bank and its depositors is very different from a normal debtor-creditor relationship.

Firstly, the bank has a reserve ratio determined by the central authority (in Singapore, that would be MAS). A debtor does not have any reserve ratio requirement and is only obliged to repay the loan upon the maturity date as well as any periodic coupon payments as stipulated by the bond.

Secondly, in the event of insolvency, bank depositors are ranked highest in terms of receivership, above bond holders and any other creditors. The central authority usually backstops bank deposits. In the 2008 financial crisis, MAS guaranteed 100% of deposits to prevent funds from fleeing to Hong Kong. However the central regime is not obliged to guarantee bond holders because such a guarantee would involve using tax payer funds to bail out private investors -- something the 99% would definitely frown upon.

 

[zhihau]

You can take it or leave it or shove it, in their terms.

i shall start looking for my milo tin :p:p:p

 

[chowka]

i shall start looking for my milo tin :p:p:p

Not under your pillow? :p

 

[Cruxx]

oh... does that mean i should charge the bank interest?

You mean you're not getting interest on your savings?

 

[halsey02]

i shall start looking for my milo tin :p:p:p

I thought it was the ovalitine tine? the Van Houten Oval shape Chocolate tin?

 

[zhihau]

You mean you're not getting interest on your savings?

interest paid in full, less than 1%

 

[zhihau]

I thought it was the ovalitine tine?

i need to hide my money else where again :(:(:(

 

[zhihau]

Not under your pillow? :p

i used to drool in my sleep bro, learned my lesson, the char kway teow ah chek refused to take the 2 dollar notes from me :(:(:(

 

[Thick Face Black Heart]

i used to drool in my sleep bro, learned my lesson, the char kway teow ah chek refused to take the 2 dollar notes from me :(:(:(

Zhihau,

If no one will accept your money, pass them all to me, I will safeguard the notes for you. I do not mind your drool, it is a privilege to help a fellow samster safeguard his cash.

 

[zhihau]

I do not mind your drool, it is a privilege to help a fellow samster safeguard his cash.

too late bro, used those $2 notes to pay for the bank service charge already :o:o:o