HKMA Should Sit On A Screw & Turn Itself Round & Around
I really hate it when smart people suddenly caved in and kowtow to big companies. They are all idiots at HKMA, including the politicians who are supporting the newest resolution. The resolution on the Lehman bond investors sage in HK - those who have invested more than HK8m in these bonds are deemed as "professional investors", and would not get a cent back. The rest will get 70% back.
What a fucking stupid idea. If a person bought HK$40m worth of bonds, is he/she a professional investor? Why??? By the sheer size of the investment???
What if I am an idiot who puts up all my HK$8m in that one investment??? What if I am that idiot who puts in HK$8m in the fucking bonds, because it SAYS THERE ITS "BONDS", not stocks, not derivatives, not futures, not land banking, not ATM investments, not even gold coins... because its FUCKING BONDS, and its issued and "guaranteed" by Lehman Brothers, ... because its FUCKING TRIPLE AAA rated ... because HKMA also thought it was triple AAA rated and because HKMA also thought its Lehman Brothers.
Sue the shit out of the banks and HKMA, ... that is an inequitable resolution. A person who invested HK$8m, ends up losing every cent, and is now worth less than HK$1m ... compare that to someone who invested HK3m and now has HK$2m in net worth ... who is the professional investor?
A professional investor knows the risk involved, the bonds were sold by assholes who did not even know what the bonds were based on and how the money would be used. The banks selling the products themselves didn't know the full extent of the risk, or else they would have TOLD THE CLIENTS already.
People were buying them because they were BONDS. If the sales, the banks and even HKMA did not know the full extent of the risk... how do you expect the people who bought to know? Its misrepresentation.
Friday, July 24, 2009
Celebrity investors of Lehman Brothers minibonds yesterday voiced their outrage that they may not see a cent in compensation as they are being classified as "professional investors."
Actress Meg Lam Kin-ming is likely to be one of the unlucky ones.
She bought about HK$10 million worth of Lehman-related products, including minibonds. "You are a professional investor once you've invested HK$8 million? How to assess?" she asked. "They [the bank] asked me to buy this and that back then. Yes, I bought a lot. But am I a professional investor?"
A professional investor is assessed on whether or not an individual's portfolio is more or less than HK$8 million, including securities holdings, according to the Securities and Futures Ordinance.
Some 29,000 Hong Kong minibond investors will be refunded about 70 percent of their original investments by banks, financial regulators announced on Wednesday.
About 2,000 investors are not qualified under the repurchase scheme as they are either "professional" or "experienced," Secretary for Financial Services and the Treasury Ceajer Chan Ka-keung said yesterday.
Other big-name entertainers caught up in the investment nightmare include superstar Jacky Cheung Hok-yau, funny man Eric Tsang Chi- wai and former actress Maria Chung Wai-bing. The media speculated that Cheung invested as much as HK$40 million in the high-risk product, while Tsang and Chung were estimated to have invested more than HK$10 million each.
Tsang said he invested in minibonds, but he could accept it even if he is not able to get his money back. He believes the most important thing is that the elderly can get their money refunded.
Banks will not compensate customers who have, in the three years preceding their first purchase of minibonds, executed five or more transactions in leveraged products, structured products, or a combination of these products, according to the Securities and Futures Commission.
Lawmaker Kam Nai-wai also said the arrangement was unfair as some purchases made by professional investors could involve misselling by banks.
Ceajer Chan said the arrangement was reached by banks and regulators, and investors should make inquiries to banks for details. "If investors who have not benefited from the program complain, the regulators will handle it," he said.p/s photo: Jeanette Aw