DBS Bank aims to compensate investors in event of missell
DBS Bank in Singapore and Hong Kong will take responsibility for products it sold linked to Lehman Brothers if an investigation into misselling of the products yields any evidence. Compensation to investors will be dealt with on a case-by-case basis. The statement comes amid protests from investors who bought Lehman-linked paper from a number of distributors in both Hong Kong and Singapore .
In Singapore DBS sold High Notes 5 products, first-to-default credit-linked notes which referenced eight entities of which Lehman was one. The US investment bank’s bankruptcy triggered the early redemption of the notes and a subsequent unwind of the product. In Hong Kong DBS was one of the distributors of the Constellation Structured Retail Notes series, which also used Lehman as a reference entity. The final valuation of the notes will be completed by 31 October 2008.
The bank, which has
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