DBS gives hope to Lehman investors in Hong Kong

October 11, 2008
Singapore Democrats

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Alfred Liu
The Standard

Investors in Lehman Brothers-backed investment products and who bought them from DBS Bank (Hong Kong) are likely to be given refunds.

The distributor of the troubled structured products said the issuer, Constellation Investment, will redeem the notes early.

“DBS Bank has voluntarily appointed an independent institution … to ensure a fair and transparent valuation process of the credit event redemption amounts,” the bank said.

Calculation of the credit event redemption amount is expected to be completed on or about October 24.

Managing director Linda Wong said the bank will not buy back the structured retail notes, which have the failed US investment bank among their reference entities, as what DBS distributed were not minibonds.

She said the bank has arranged for more than 100 staff to handle complaints and it will offer a full refund to investors if it is found that they were misled into buying the products.

http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=72716&sid…