Reviews to Legco on bank faults

After reviews on Legco session on 23/2/09 again, most HK government offcials in fact were pointed their fingers at banks especially on our LBV complaints to legco on bank faults:

1. Prof. Chan did concluded that the reasons that there were so many Minibonds sold by banks was because HK banks looked for high commission during the sales of Minibonds thru he never pointed out that from our complaints also pointed out that bonds sales yielded very low commission to bank profits.

2. Yam put the blames on high volumn of sales of Minibonds to the demand of HK market and later on during 2007/8 he blame the banks for all these hard sales of these high risks products to customers and some of banks even refused his demand that Minibonds to be sold as high risks products. In fact, our LBV complaints on SFC/HKMA reports on Minibonds to Legco did pointed out Shanghai Commercial Banks did listed Minibonds as low risk products.

3. SFC was allowing Minibonds to be sold in HK depending on the supply and demand of the markets and the risk level of the investors and all informations must be disclosed to their customers in wording. Right now SFC is looking into Shanghai Commercial Banks for all their wrong doing and also nearly all the banks that sold Minibonds with our LBV complaints. There are also similar sales of these structured products in Europe and lots of lawsuits but nobody did pointed out that structured products were never sold in public banking pretending to be bonds as HK was doing but actually they were false bonds. Right now SFC is already started to put high risk printed in bold letters in all new trust funds documents in HK.

4. Choi, DCE of HKMA, did gave us a hint that HK government especially HKMA was actually promoting Minibonds sales in banks for he said that bonds are not fit for most customers in public banking (for most companies bonds needed to be bought at private banks) and only Minibonds fit HK customers (to be bought at much cheaper price). In our LBV complaints to Legco of the HK police investigations, HK police was asked to search banks records on companies bonds sales records of banks such as Shanghai Commercial Banks for there are actually companies bonds sales happening in HK for some customers in some banks such as HSBC and not for other smaller banks such as Shanghai Commercial Bank and these smaller banks started to sell false bonds such as Minibonds to customers to make huge profits.