MM Lee to investors: you walk in with your eyes OPEN

Looks like our leaders are generally NOT SYMPATHETIC to the minibond investors who lost their entire life-savings........

On the plight of investors who have lost money investing in Lehman-related mini-bonds, Mr Lee had this word of caution.

“Please remember, when you get higher returns than what is the average in the markets, that means you are incurring higher risk. So on that message I leave you to ponder about your next purchase,” he said.

Mr Lee said many educated and young investors went in with their eyes open and banks will offer compensation according to what is fair.

EDITORS’ NOTE: According to MM Lee’s reasoning, then the Lehman products, which offered only miserly 5% yield should be considered low to moderate risk. The reality is such that the banks themselves ranked it 8 out of a scale of 10 in terms of complexity and risks profile. Even stocks which offer a much greater risk do not see their values dissipate overnight. We hope these investors will go in to the next general election with their eyes OPEN too.

Watch the CNA video here:

http://wayangparty.com/2008/11/10/mm-lee-to-investors-you-walk-in-with-your-eyes-open/

Avantas said:

EDITORS’ NOTE: ...The reality is such that the banks themselves ranked it 8 out of a scale of 10 in terms of complexity and risks profile. ...

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Can you quote the reference for this please. Thank you.

But who allowed the products to be sold in the first instance? No matter how legalistic LKY likes to get, the regulators and government must surely shoulder some of the blame. One may be legally correct, but is morally and ethically reprehensible by simply just washing one's hands off the whole affair.

kakowi said:

the reference

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DBS management during close door meeting.. one investor told reporter

Zombie said:

DBS management during close door meeting.. one investor told reporter

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Then there will be difficulty proving it.

The investor will likely be an interested party (and be selective of hearing) and the DBS management may well say it is quoted out of context.

Then he should tell HK DBS no need pay la, talk so much.

Like i said, his way of reasoning only let him win in HIS OWN LAND, go other country people wack him like dog.

I guess he should save his speech for daughter in law, since she squandered $b away.

investors not happy can sue dbs lor in the kangaroo courts , opps I mean in australia courts which is neutral party.

For the banks' employees not to reveal the full risks, by staying silent, would have been deemed as misleading or deceptive conduct by corporations.

Thus, if people bought those investments, and the banks didn't fully disclose any of the risks, under the Section 52, Trade Practices Act, of the Australian Commonwealth law, the banks are liable to get sued if the customers feel that the banks have deliberately cheated them out of their money by not informing them of the risks and/or by not giving them access to independent advice.

In Australia, that is the case. In Singapore, where the law protects the well-off and well-connected, banks are not liable, even when they are responsible. And this is in the place where Singapore politicians will also claim that investors walked in with their eyes open, even though the bank could be found to be deceptive under an independent court, and when the government realises that most of these investors weren't financially savvy, and thus should have access to advice from independent sources.

Lee Kuan Yew is shedding his responsibilities to his people by claiming that they 'walked in with their eyes open'. In such a manner, he has implied that he endorses the misleading or deceptive act and manner of these banks, and will allow such cheating to continue.

Is it a sign of the moral decline of this government?

yes especially those new singapore citizens who going to be murdered by their sons for making them serve NS. KENNA CON BY GOVT.

Dont LKY, I vote opposition with my eyes open forever.

The_Latest_H said:

Lee Kuan Yew is shedding his responsibilities to his people by claiming that they 'walked in with their eyes open'. In such a manner, he has implied that he endorses the misleading or deceptive act and manner of these banks, and will allow such cheating to continue.

Is it a sign of the moral decline of this government?

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One has to understand the conflict of interest at play here. Who owns DBS? If he endorses banks paying out to people who are misled into buying the toxic investments he will be shooting himself in his own foot.

snrcitizen said:

One has to understand the conflict of interest at play here. Who owns DBS? If he endorses banks paying out to people who are misled into buying the toxic investments he will be shooting himself in his own foot.

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Thanks for pointing that out, bro. And It points out the banking sector, especially the government-owned ones, are too politicised. And that weakens our economic fundamentals in the long run.

Anything that is heavily politicised for the benefit of the ruling regime endangers the future of the country and its citizens in the long run. It has happened before in the annals of human history, and the PAP will not avoid history if they follow the same human path.

Btw, Australia's federal government in Canberra doesn't own any banks anymore. Commonwealth Bank was once a state-owned bank, but with the formation of the Reserve Bank of Australia many years ago, Commonwealth have since become a non-government, publicly-listed bank. Australia understand this.

The_Latest_H said:

Thanks for pointing that out, bro. And It points out the banking sector, especially the government-owned ones, are too politicised. And that weakens our economic fundamentals in the long run.

Anything that is heavily politicised for the benefit of the ruling regime endangers the future of the country and its citizens in the long run. It has happened before in the annals of human history, and the PAP will not avoid history if they follow the same human path.

Btw, Australia's federal government in Canberra doesn't own any banks anymore. Commonwealth Bank was once a state-owned bank, but with the formation of the Reserve Bank of Australia many years ago, Commonwealth have since become a non-government, publicly-listed bank. Australia understand this.

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In HK, their govt does not own banks too and this is why their govt are backing the people getting their money back from the banks who sold these so-called investments.

The Singapore govt has too many hands in businesses aka GLC's. This leads to many conflicts of interest. An example is the NTUC, which is supposed to be a union for workers, are themselves actually sitting on the opposite side of the workers because NTUC, headed by a PAP minister, is also an employer.

This is reason why price increases to the detriment of citizens are so easily implemented. Electricity charges increasing by over 20 per cent and transport costs going up for the people during a recession are also diseases arising from this conflict of interest.

lose means lose lah. what's the big deal. my friend lost $300K and she told me she was stupid to listen to the financial managers.she did not blame anybody. she blamed herself.

gamblers are lidat. they win, they celebrate and rejoice. when they lose, they curse heaven and earth.

yes, you buy with eyes open but mas can afford to close eyes. open or close their business. not yours. you walk into hell with eyes wide open.the bible is in front of you and you don't even read or touch. so blame nobody. eyes wide open.good one!

I cannot help but compare his reaction in this instance with the way he personally intervened and handled the SIA Pilot's Union- especially the episode where Ryan was later declared persona non grata.
Voters must remember and vote with their eyes open.

Avantas said:

Looks like our leaders are generally NOT SYMPATHETIC to the minibond investors who lost their entire life-savings........

On the plight of investors who have lost money investing in Lehman-related mini-bonds, Mr Lee had this word of caution.

“Please remember, when you get higher returns than what is the average in the markets, that means you are incurring higher risk. So on that message I leave you to ponder about your next purchase,” he said.

Mr Lee said many educated and young investors went in with their eyes open and banks will offer compensation according to what is fair.

EDITORS’ NOTE: According to MM Lee’s reasoning, then the Lehman products, which offered only miserly 5% yield should be considered low to moderate risk. The reality is such that the banks themselves ranked it 8 out of a scale of 10 in terms of complexity and risks profile. Even stocks which offer a much greater risk do not see their values dissipate overnight. We hope these investors will go in to the next general election with their eyes OPEN too.

Watch the CNA video here:

http://wayangparty.com/2008/11/10/mm-lee-to-investors-you-walk-in-with-your-eyes-open/

Click to expand...

He should answer why Ho Jinx lost billions in US banks. Today, ST reported the loss of Ho Jinx invesment in US bank as rash decision when other people withdrew from such risk. Now we know why CPF monies were being witheld from us. Did LKY say anything about it?

did u wok in2 suzhou wif ur i's open? ...
did u wok in2 sin corp wif both ur i's open? ...
did u wok in2 quicksands wif both ur i's wide open? ...

mr LKY, i oreadi vote wif my eye open big big liao during last election

i will still vote wif my eye open big big in the next election.

theblackhole said:

lose means lose lah. what's the big deal. my friend lost $300K and she told me she was stupid to listen to the financial managers.she did not blame anybody. she blamed herself.

gamblers are lidat. they win, they celebrate and rejoice. when they lose, they curse heaven and earth.

yes, you buy with eyes open but mas can afford to close eyes. open or close their business. not yours. you walk into hell with eyes wide open.the bible is in front of you and you don't even read or touch. so blame nobody. eyes wide open.good one!

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the point is some of these people dont even know that they are gambling.