Aussie sues DBS over Lehman structured products

smalldot SG

DBS Bank is being sued by a client claiming fraudulent and negligent misrepresentations that a US$1.5 million ($2 million) Lehman Brothers-related investment was "sound".

Former DBS banker Desmond Lim Hong Nian had said principal invested in the structured product was safe, according to a Nov 30 lawsuit filed with the Singapore High Court by Australian Mark Carpenter.

Mr Carpenter is seeking to recover the US$1.17 million he lost when Lehman filed for bankruptcy protection in 2008 and claiming an additional US$280,000 from DBS and Mr Lim for losses incurred after the bank made five unauthorised transactions in currency-linked investments, according to court filings.

The bank had its ban on the sale of structured notes lifted by the Monetary Authority of Singapore in February after it improved the internal procedures of its advisory services across all its investment products.

DBS was one of 10 financial institutions banned from selling structured notes following claims by investors that they were misled on products tied to Lehman.

A DBS spokeswoman said the bank will defend the lawsuit. Mr Lim is no longer employed by the bank, the spokeswoman added, declining to elaborate.

Mr Carpenter's lawyer, Mr N Sreenivasan, could not be reached for comment at his office.

DBS denied in court filings telling Mr Carpenter that his principal in the investments would be protected. Mr Carpenter indicated he was prepared to take high risks and was an experienced investor who made his own decisions, the bank said.

Mr Carpenter also failed to inform the bank within seven days of receiving his investment advice slips that there were erroneous transactions, DBS said.

Investors in Singapore bought $508 million of structured products linked to Lehman, which lost most or all of their value when the lender filed for the biggest bankruptcy in United States corporate history.

DBS last year reviewed 140 cases in Singapore where its customers lost money on $103 million of Lehman-linked structured notes.

The Singapore lender has also been sued by 204 investors who incurred $17 million in losses on securities linked to Lehman.

DBS in July agreed to repay HK$651 million ($110 million) to Hong Kong clients it classified as having a low or medium investment risk profile and who bought Lehman-linked notes.

Asromanista2001 SG

while i hate Australians...............i hope this guy will win against DBS............

QX179R SG

Suit against DBS dismissed

DBS Bank has scored a victory over 215 investors who mounted a collective action lawsuit against the bank in a bid to recover up to $18 million poured into a now worthless product, DBS High Notes 5.

The group had sued DBS Bank in July last year after they lost all their money invested in the complex structured product linked to failed United States investment bank Lehman Brothers.

-- ST

Asromanista2001 SG

Suit against DBS dismissed

DBS Bank has scored a victory over 215 investors who mounted a collective action lawsuit against the bank in a bid to recover up to $18 million poured into a now worthless product, DBS High Notes 5.

The group had sued DBS Bank in July last year after they lost all their money invested in the complex structured product linked to failed United States investment bank Lehman Brothers.

-- ST

not surprised DBS won............but surprised that PAP never let the people win............just to win votes !

if those 215 investors are quite old then over 1000 votes for opposition liao................good !