雷曼倒閉殃及港 任內憾事

[成報

【本報財經組報道】金融管理局總裁任志剛，任內為本港金融穩定出謀劃策，不過因投資銀行雷曼兄弟的倒閉，使其相關衍生投資產品違約，引起資產價格暴跌，禍及不少本港買了相關的雷曼投資產品苦主。苦主因而經常上街示威遊行，並且投訴任志剛監管不力及薪酬過高，都成為任志剛任內的憾事。

　 　金管局於1993年4月1日成立，其主要職能由《外匯基金條例》和《銀行業條例》規定，並且向財政司司長負責。亦是香港政府架構中負責維持貨幣及銀行體 系穩定的機構，其主要職能為維持港元匯價穩定、透過穩健投資策略，管理外匯基金、促進香港銀行體系穩健，與及發展香港金融市場基礎設施，使貨幣暢順流通。

每周發表財金觀點

　　任內任 志剛為完成金管局職能，作出多番貢獻。當中為維持港元匯價穩定，在97年亞洲金融風暴成功維繫了港元匯價的穩定。他曾經表示， 能夠成功渡過並不易做到。而其管理的外匯基金，即使在金融海嘯下，08年投資回報率雖然為負5.6%，但是同期多個外國主權基金表現最好的亦要虧蝕 8.8%。而自成立以來外匯基金錄得6.1%的複合年度回報率，同期的複合年度通脹率為1.5%，為本港儲備的跑贏通脹。

　　另外，從1999年9月2日起，金融管理局總裁任志剛每周均會發表其專欄文章—觀點，以發表其對香港貨幣與金融事務的意見。為了日後能夠與公眾保持溝通，他表示將會通過其個人網頁以保持聯繫，網址是josephyam.com。

　　他說，希望在記憶力還好時，可以把一些香港貨幣及金融發展歷史事情記錄下來。同時補充這只屬其個人回憶，並非正式歷史，亦指當中一些與市民大眾可能關注的事情， 都會透過這個網頁與大家分享。

上商料下半年迷債撥備1.75億

星島日報

上海商業銀行常務董事兼行政總裁郭錫志表示，該行預計下半年就雷曼迷你債券進行的撥備金額所需約一點七五億元。該行上半年就雷曼迷債撥備約三千萬元。

人民幣存款續升

另外，對於近日發行的人民幣國債，回報率吸引，而該行的客戶購買人民幣國債的年期以兩年為多。他指，該行現時的人民幣存款亦持續上升，料升勢將會持續。他相信按揭息率下調空間有限，至於會否上調則視乎市場需求及走勢。

郭氏指，部分因受投資組合變化而帶動，該行去年同期的核心資本比率為百分之十八。上海商業銀行公布半年業績，今年上半年股東應佔溢利六點二一億元，按年減少百之二十五點六五。期內各項客戶貸款及商業票據(貸款減值準備前)共四百六十九點四七，減少百分之六點四二。

30 Sep 2009

民事司法制度改革，無律師代表訴訟的撮要，及有關資源

聲明：本文並非也不是邀請或暗示或提議任何人士進行訴訟，而且不對文中內容準確性，正確性負責。

本文的內容僅是個人閱讀『民事司法制度改革』，及『無律師代表訴訟人資源中心』網站內文章的筆記，讀者如欲進一步了解詳細的資料，應依據下面的鏈接閱讀該兩網站的全部內容。

1 民事司法制度改革撮要
民事司法制度改革於今年四月二日實施，改革的幾個重點：
1.1 精簡正審前的程序，包括由法庭訂立案件管理時間表；規管及減除非正審申請和上訴(次數)。其中措施之一是：法庭在作出命令時，可注明如有違反管理命令，無須向法庭申請即可自動生效的附帶罰則。
1.2 鼓勵訴訟各方和解，措施包括：除被告人外，原告人也可就和解作出提議。
1.3 法庭在判定訟費時可以有更大的彈性，訟費由敗方支付的規則不一定適用。

2 無律師代表訴訟撮要
當向法庭提交狀紙後，司法程序便要展開，無律師代表訴訟將由興訟人自己跟進法庭規定的所有程序，而程序對訴訟的勝負及訟費的判定也有相當的關聯，因此須予以密切的關注。
2.1 另類排解程序。對於無律師代表訴訟，法庭可以在適合的案件中指示各方嘗試調解。
2.2 “附帶條款和解建議及附帶條件付款”。在新制度的安排下，如果原告提出“附帶條款和解建議”(原告僅可提出此項建議)，或被告提出兩項建議中的其中一項或兩項一起提出，訴訟的另一方便須認真考慮，因為接受與否其後果將是：如果未能取得比“附帶條款和解建議或附帶條件付款”更佳的結果，該方便須承擔訟費和利息的後果。
2.2.1 “附帶條款和解建議”可在訴訟展開後隨時提出；
2.2.2 “附帶條件付款”。原告人可透過繳付存款於法庭，向原告就金錢索提出和解建議。
2.3 證據與舉證責任。以下一段文字摘自“民事司法制度改革─《民事訴訟程序須知》小冊子：
“5‧1…一般而言，提出指控的一方有責任提出證據證明指控屬實(舉證責任)。然而實際做法須視乎法庭的指示而定。在合適的情況下，法庭或會命令被指控的一方舉證”。
議論：在大多數的情況下，對證券不當銷售的指控大部份是依據證監會《操守準則》的規定，某些程序或手續應該做而沒有做。如果在控辯雙方同樣缺乏客觀證據的情況下，控辯雙方都要依據間接的，或主觀的證據支持。就雷曼事件所引發的訴訟而言，證明某些事情有發生的舉證難度，辯方似乎更大。所謂“事實是無敵的”，沒有發生的事而要證明有發生，那麼證明方，當事人(證明人)除了要考慮道德風險外，也要考慮刑事的風險。當事人(證明人)、證據，是辯方的困難。
2.4 可利用的資源：
無律師代表訴訟人資源中心網站：http://rcul.judiciary.gov.hk/rc/tc_cover.htm。此網站不但有各種無律師代表訴訟的常見問題解答，還有一些訴訟文件的樣本、視像短片等。
地址 : 香港金鐘道38號高等法院大樓低層一樓 LG 105室
電 話 : 2825 0586
資源中心提供的服務和設施(節錄)：
“資源中心所提供的協助只限於程序方面的事項。中心的工作人員不會提供法律意見，亦不會就案件的是非曲直作出評論。對於需要提交非宗教式誓詞/宗教式誓章以為案件作準備的無律師代表訴訟人，本中心亦提供宣誓服務。此外，本中心也會就填寫法庭表格和呈交法庭文件冊方面的事項給予指導”。
2.5 民事司法制度改革網站：http://www.civiljustice.gov.hk/chi/home.html。
2.6 證監會的《操守準則》等原文，及金管局的相關證券銷售監管文件，雷曼苦主大聯盟的網站有相關網址，此處略。
2.7 法律觀點的資源
一般地考察，在雷曼事件中要通過訴訟提出申索，涉及對證券銷售的法例觀點，可參考證監會執行總監施衛民先生在08年10月23日在第四屆財富管理會議上發表的演說：
中文稿鏈接：
http://www.sfc.hk/sfc/doc/TC/speeches/speeches/08/ms_20081023_wmc_c.pdf
英文稿鏈接：
http://www.sfc.hk/sfc/doc/EN/speeches/speeches/08/ms_20081023_wmc.pdf

值得注意的是，演說中對證監會《操守準則》的規定中，對有關責任的闡釋，分別是高級管理層應負主要的責任，及前線銷售人員的行為準則，是明確及具體的。如果對不當銷售提出訴訟，不包括機構本身及管理的責任，那是沒有意義的。

最後重申，訴訟是一個漫長及艱苦的過程，是否要展開，各人應小心審視自己及家庭的因素，
收集證明事實的證據，尋求恰當的意見。

老馬 26/09/09

稱經理蒙騙買ELN 富翁蝕1.4億告上商東亞

稱經理蒙騙買ELN 富翁蝕1.4億告上商東亞

【明報專訊】身家達1.8 億元的92 歲退休鞋商，稱被相識廿年的銀行投資經理蒙騙，投資股票掛票據（ELN）、累計股票期權（accumulator）和累計認沽期權（decumulator），令他虧損1.4 億元，大半身家蒸發。鞋商日前入稟指投資經理先後任職的上海商業銀行及東亞銀行疏忽，要求兩銀行賠償損失。
上海商業銀行回應說，案件已交律師處理，不予置評；東亞銀行至截稿前仍未有回應。
九旬身體差難理解複雜事
原訴人張志華（譯音），英文名Clark，上海出生，說普通話，略懂英語。他早年在台灣經營家族的草帽生意，至1960 年代靠製鞋及出口到歐美致富。他指2000 年退休後，05 年因中風需動腦部手術，身體大不如前，難以專注理解複雜的事項，現時他定居上海。
入稟狀指出，張理財方式保守，從沒有向銀行借貸做生意，投資經驗只限於定期存款，自50 年代起所有款項均存在上海商業銀行（下稱上商）。
由於生意關係，張於80 年代在上商的紐約分行開戶，認識銀行經理陳國雄（譯音）。
90 年代起，陳成為其理財顧問。07 年陳轉職東亞銀行（下稱東亞），但翌年轉回上商工作，張亦將資金跟隨陳的銀行作調動，放心由他打理。
稱隱瞞風險先投資後通知
2003 年起，陳國雄致電張建議買賣股票，張指兩人相識多時，陳在上商任要職，擁有豐富金融投資經驗，故對他絕不懷疑。稍後陳開始自作主張替他買賣股票，每每事後才通知張。
2004 年5 月，陳游說張投資ELN，對他說這類投資比定期存款的利息高，而且票據由大銀行發出，非常安全，但隱瞞張ELN 屬高風險投資，只適合專業投資者。陳於稍後兩年內為他買賣67 次ELN 及accumulator，總值達6.8 億元。
資金蝕六成需補逾億差價
07 年3 月，陳轉到東亞工作，一年後轉回上商，其間張把資產跟隨陳任職的銀行調移，但多年來從沒有人為張作任何風險評估，陳更開始以借貸形式代張買賣ELN，令投資風險增加。去年10 月，張終得悉原來所有投資均嚴重虧損，過去的月結單從未反映真正投資表現。他在東亞及上商的ELN 及整體投資，分別蝕了61%及67%，甚至要為投資向兩銀行填補3568 萬及1.17 億元的差價。
【案件編號：HCA1996/09】

KPMG

KPMG - Accounting firm for DBS constellation notes that also adapt inaccurate accounting method for Siemen and LHSP in Europe that I bought the stocks before under law suit in fruads of accounting methods.

Right now KPMG is also involved in HK banks frauds of DBS Constellation Notes for their dubious accounting methods as charged even by Shanghai Commercial bank manager that involved in bank frauds and sold their Constellation Notes to me and I had sent the complaint letters to Legco last year for Legco to investigate.


From Wikipedia, the free encyclopedia

KPMG KPMG Logo

Type Swiss Cooperative
Founded 1987; merger of Peat Marwick International and Klynveld Main Goerdeler
Headquarters Flag of the Netherlands.svg Amstelveen, Netherlands (global)[1]
Key people Timothy P. Flynn (Chairman)[2]
Industry Professional services
Services Audit
Tax
Advisory
Revenue ▲$22.7 billion USD (2008)
Employees 136,000
Website www.kpmg.com

KPMG is one of the largest professional services firms in the world and one of the Big Four auditors, along with PricewaterhouseCoopers (PwC), Deloitte Touche Tohmatsu (Deloitte) and Ernst & Young (EY). Its global headquarters are located in Amstelveen, Netherlands.[1]

KPMG employs over 136,500 people[3] in a global network of professional services firms spanning over 140 countries.[4] KPMG has three lines of services: audit, tax, and advisory.

Contents


* 1 History
o 1.1 Early years and mergers
o 1.2 Recent history
* 2 Global structure
* 3 Services
* 4 Major clients
* 5 Name and branding
* 6 Staff
* 7 Criticisms
o 7.1 Rite Aid
o 7.2 Lernout & Hauspie
o 7.3 Tax shelter fraud
o 7.4 Siemens
o 7.5 Others
* 8 Sponsorship
* 9 Notable current and former employees
o 9.1 Business
o 9.2 Politics and public service
o 9.3 Other
* 10 References
* 11 External links

History
Early years and mergers
Headquarters of KPMG LLP, the United States-based member firm of KPMG International, at 345 Park Avenue, New York City, New York.
The 34-storey KPMG Tower on De Maisonneuve Boulevard in Montreal.

The firm was established in 1870 when William Barclay Peat formed an accounting firm in London.[5] In 1877 accountancy firm Thomson McLintock opened an office in Glasgow[5] and in 1911 William Barclay Peat & Co. and Marwick Mitchell & Co. merged to form Peat Marwick Mitchell & Co, later known as Peat Marwick.

Meanwhile in 1917 Piet Klynveld opened his accounting-firm in Amsterdam. Later he merged with Kraayenhof to form Klynveld Kraayenhof & Co.

In 1979 Thomson McLintock formed KMG (Klynveld Main Goerdeler) as a grouping of independent national practices to create a strong European-based international firm.[5] Then in 1987 Thomson McLintock/KMG and Peat Marwick joined forces in the first mega-merger of large accounting firms and formed a firm called KPMG in the US and Peat Marwick McLintock in the UK.[5].

In 1990 the two firms settled on the common name of KPMG Peat Marwick McClintock but in 1991 the firm was renamed KPMG Peat Marwick and in 1995 the name was reduced again to KPMG

In 1997 KPMG and Ernst & Young announced that they were to merge, in a manoeuvre largely seen as a spoiling tactic over the merger of Price Waterhouse and Coopers & Lybrand. However that merger, to form PricewaterhouseCoopers, was granted regulatory approval while the KPMG/Ernst & Young tie-up was later abandoned.[6]
[edit] Recent history

In 2001 KPMG divested its U.S. consulting firm through an IPO of KPMG Consulting Inc, which is now called BearingPoint, Inc.[7] In early 2009, BearingPoint filed for Chapter 11 bankruptcy protection and proceeded to sell portions of the firm to Deloitte, PricewaterhouseCoopers, and other parties.[8]

The UK and Dutch consulting arms were sold to Atos Origin in 2002.[9]

In 2003 KPMG divested itself of its legal arm, Klegal[10] and KPMG LLP sold its Dispute Advisory Services to FTI Consulting.[11]

KPMG's member firms in the UK, Germany, Switzerland and Liechtenstein merged to form KPMG Europe LLP in October 2007. They appointed joint Chairmen, John Griffith-Jones and Ralf Nonnenmacher.[5]

It was announced in December 2008 that two of Tremont Group’s Rye Select funds, audited by KPMG, had $2.37 billion invested with the Madoff "Ponzi scheme."[12] Class action suits were filed.[13]

Global structure

Each national KPMG firm is an independent legal entity and is a member of KPMG International, a Swiss cooperative registered in the Swiss Canton of Zug. KPMG International changed its legal structure from a Swiss Verein to a cooperative under Swiss law in 2003.[14]

KPMG International is led by:[15]

* Timothy P. Flynn, Chairman, KPMG International
* Michael Wareing, CEO, KPMG International
* John Griffith-Jones, Chairman, Europe, Middle East, Africa and India Region
* John B. Harrison, Deputy Chairman, KPMG International
* John Veihmeyer, Chairman, Americas Region
* Carlson Tong, Chairman, Asia Pacific Region

Services

KPMG offers the following services:[16]

* Audit: Statutory Audit and Financial Statement Audit
* Tax: Business and Personal Tax services
* Advisory: KPMG's advisory services are organized into three themes (growth, governance and performance) and nine service lines:
1. Accounting Advisory Services
2. Business Performance Services
3. Corporate Finance
4. Financial Risk Management Services
5. Forensics
6. Internal Audit, Risk and Compliance Services (IARCS)
7. IT Advisory
8. Restructuring
9. Transaction Services (M&A)

Major clients
The 34-storey KPMG Centre in Dallas, Texas.

KPMG member firms serve as the independent auditors for a large number of major corporations:

* Consulting: Accenture, Computer Sciences Corporation, Gartner, Shaw Group

* Construction and Real Estate: AMEC, Carillion, CB Richard Ellis, KBR, Lend Lease Corporation, Leighton Holdings, Tishman Speyer, Jones Lang LaSalle, Mirvac

* Energy: Caltex, Citgo, Devon Energy, Halliburton, Husky, Kuwait Petroleum Corporation, LUKoil, Murphy Oil, Occidental Petroleum, Petrobras, Reliant Energy, Sinopec, TransCanada Pipelines, Valero Energy Corporation

* Financial Services: Abu Dhabi Investment Authority, AIB, Aetna, Allianz, Australia and New Zealand Banking Group, Bank of East Asia, Bank of Montreal, Bank of New York Mellon, Bank of Nova Scotia, Citigroup, Climate Exchange, Credit Suisse, Deutsche Bank, Deutsche Börse, Dresdner Bank, Fidelity National Financial, Fidelity National Information Services, First Republic Bank, Insurance Australia Group, International Bank of Commerce, Itochu, Hang Seng Bank, HBOS, Hiscox, HSBC,Legg Mason, MassMutual Financial Group, Moody's, Munich Re Group, Nationwide Financial, Northern Trust, Old Mutual, Orix, Oppenheimer Funds, Perpetual Limited, Prudential plc, Raymond James Financial, Salomon Smith Barney, Société Générale, Standard Chartered Bank, Travelers, Visa International, Wachovia, Wells Fargo

* Government & Education: CPS Energy, City of San Antonio, Duke University, Johns Hopkins University, Georgia Lottery, Office of Personnel Management, St. Mary's University, Santa Clara University, State of New Jersey, State of Texas, State of Illinois, Triumphant Institute of Management Education, University of Chicago, US Department of Energy, US Department of Homeland Security, US Department of Interior, US Department of Justice, US Department of Treasury

* Healthcare: Ansell, Kaiser Foundation, Providence Health System, Partners In Health

* Hotels: Hyatt Corporation

* Industrial Products: Asahi Glass Co., BASF, BMHC, BMW, Boral, Cemex, DaimlerChrysler, General Electric, Greatpac, Honda, Jabil Circuit, Komatsu Limited, Matsushita Electric Industrial Co., Mitsubishi Electric, Navistar International, Severstal, Sumitomo Group, ThyssenKrupp AG, Weyerhaeuser

* Media: BBC, Bertelsmann, ITV, Sulekha, Metro International, National Geographic Society, NBC Universal, R.H. Donnelley, RealNetworks, Sega, Sony BMG, Sun-Times Media Group, Wolters Kluwer, Virgin Group

* Mining: BHP Billiton, Rusal

* Pharmaceutical: AstraZeneca, Pfizer

* Retail & Consumer Products: Alberto-Culver, Arla, Asahi Breweries, Associated British Foods, Burger King, Cargill, Carlsberg, Carrefour, ConAgra Foods, Costco, Darden Restaurants, Diageo, Federated Department Stores, Jack in the Box, J.C. Penney, General Mills, Goodman Fielder, Hasbro, Heineken, The Hershey Company, Home Depot, Hooters of America, Macy's, Maple Leaf Foods, Metro AG, Mohawk Industries, Morton's of Chicago, Nestlé, Netflix, Office Max, PepsiCo, Publix Super Markets, R.J. Reynolds Tobacco, Ruth's Chris Steakhouse, Seaboard, Shiseido, Supervalu, Winn-Dixie, Yum! Brands

* Technology: Adobe Systems, Applied Materials, Beckman Coulter, Boston Scientific, Broadcom, Carl Zeiss AG, CA Inc., Cerner, CNET Networks, Dolby Laboratories, Electronic Arts, EDS, Ericsson,LG Group, Motorola, National Semiconductor, Navteq, Nortel, Olympus Corporation, Philips, Samsung, Sanmina-SCI, Symantec, TDK Corporation, TiVO, WebEx, Wipro Technologies, VeriSign

* Telecoms: Cable & Wireless, Cablevision, CenturyTel, China Mobile, China Telecom, Citizens Communications, Embarq, Telecom New Zealand, PCCW, Qwest, Rogers Communications, SprintNextel

* Travel and Transportation: Air France, Alaska Airlines, Amtrak, Asiana Airlines, Brink's, BMW, Cathay Pacific, China Southern Airlines, Chrysler LLC, Daimler AG, EasyJet, EWS, EVA Air, Frontier Airlines, KLM, MTR Corporation, Norfolk Southern Railway, Qantas, Ryanair, US Airways, WestJet

Name and branding
KPMG building in Kamloops, British Columbia.

Roots for the name KPMG stem from the names of four partners who merged their own independent accounting firms:

* K stands for Klynveld, after Piet Klynveld, founder of the accounting firm Klynveld Kraayenhof & Co. in Amsterdam in 1917.

* P stands for Peat, after William Barclay Peat, founder of the accounting firm Wiiliam Barclay Peat & Co. in London in 1870.

* M stands for Marwick, after James Marwick, co-founder of the accounting firm Marwick, Mitchell & Co. in New York City in 1897.

* G stands for Goerdeler, after Dr. Reinhard Goerdeler, chairman of the German accounting firm Deutsche Treuhand-Gesellschaft (DTG) and, later, chairman of KPMG.

Staff

The US branch of KPMG was rated one of the top 10 companies for working mothers.[17] It is also ranked No. 56 on Fortune Magazine's list of 100 Best Companies to Work For, voted for by employees. [18]

KPMG ranks No. 5 out of 125 among companies with the best training programs according to "Training Magazine".[19]

KPMG was the preferred employer among the Big Four accounting firms according to College Grad.com.[20] It was also ranked No.5 on the list of "50 Best Places to Launch a Career" in 2008.[21]

In 2008 KPMG in the UK was named the best big company to work for by The Times. This was the fourth consecutive year that KPMG has made the top three winning three times in that four years. If a good position is obtained in the survey staff receive an extra days holiday, some have suggested that this could influence how staff fill in the survey thus putting the validity of the award in doubt.[22]

In 2009 in the UK, KPMG introduced programme known as 'Flexible Futures'. This allowed staff to volunteer to give the firm the option to either send them on a sabbatical at 30% pay for up to 12 weeks, or to reduce their working hours to 4 days a week. The option remains open to the firm until October 2010. This facility has been invoked by the firm in some departments. KPMG publicised this as innovative and an alternative approach to redundancies. Reaction within the firm was generally positive, with over 75% of staff volunteering. However over 100 staff had been made redundant prior to this announcement, leading some to accuse KPMG of being hypocritical in the message that they were given.[23]

In October 2008, KPMG was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc., and was featured in Maclean's newsmagazine. Later that month, KPMG was also named one of Greater Toronto's Top Employers, which was announced by the Toronto Star newspaper.[24]
KPMG in Leeds, West Yorkshire.

Criticisms

Rite Aid

In 2003, KPMG agreed to pay $125 million to settle a lawsuit stemming from the firm's audits of the drug chain Rite Aid.[25]
Lernout & Hauspie

In 2004, KPMG agreed to pay $115 million to settle lawsuits stemming from the collapse of software company Lernout & Hauspie Speech Products NV.[26]- I bought this company stock before
-
Tax shelter fraud
Main article: KPMG tax shelter fraud

In early 2005, the United States member firm, KPMG LLP, was accused by the United States Department of Justice of fraud in marketing abusive tax shelters. KPMG LLP admitted criminal wrongdoing in creating fraudulent tax shelters to help wealthy clients avoid $2.5 billion in taxes and agreed to pay $456 million in penalties in exchange for a deferred prosecution agreement. KPMG LLP would not face criminal prosecution if it complied with the terms of its agreement with the government. On January 3, 2007, the criminal conspiracy charges against KPMG were dropped.[27] However, Federal Attorney Michael J. Garcia stated that the charges could be reinstated if KPMG does not continue to submit to continued monitorship through September 2008.[28]

Before the settlement, the firm, on the advice of its counsel Skadden, Arps, Slate, Meagher & Flom LLP, removed several tax partners and admitted "unlawful conduct" by those partners. The firm agreed to cooperate with DOJ's investigation and help prosecute former partners who had devised and sold the tax shelters. Additionally, the firm hired former U.S. district judge Sven Erik Holmes to monitor its legal and regulatory affairs.

Siemens

In February 2007 KPMG Germany was investigated for ignoring questionable payments in the Siemens bribery case.[29] (Siemens agreed to pay a record $1.34 billion in fines to settle the case in December, 2008.) In November 2008 the Siemens Supervisory Board recommended changing auditors from KPMG to Ernst & Young.[30]-I also owned this stocks

Others

In 2006, Fannie Mae sued KPMG for malpractice for approving years of erroneous financial statements.[31]In March 2008 KPMG was accused of enabling “improper and imprudent practices” at New Century Financial, a failed mortgage company[32] and KPMG agreed to pay $80 million to settle suits from Xerox shareholders over manipulated earnings reports.[33]

Sponsorship

In February 2008, Phil Mickelson, ranked one of the best golfers in the world, signed a three-year global sponsorship deal with KPMG. As part of the agreement, Mickelson will wear the KPMG logo on his headwear during all golf related appearances.[34]

Notable current and former employees

Business

* Margaret Jackson - chairwoman of QANTAS (2000-2007)
* Syd Kessler - entrepreneur
* Michael O'Leary - CEO of Ryanair (1994-present)
* Zarin Patel - CFO of the BBC
* Colin Sharman, Baron Sharman - chairman of Aviva (2006-present)
* Sir Michael Rake - Chairman of BT (2007- present)

Politics and public service

* Steve Bracks - Premier of Victoria, Australia (1999-2007)
* Jerry Finnell - Mayor of Del Mar, California (2004-present)
* Nick Gibb - Member of the British Parliament (1997-present)
* Mark Harper - Member of the British Parliament (2005-present)
* Toby Harris, Baron Harris of Haringey - member of the London Assembly (2000-04); chairman of the Metropolitan Police Authority (2000-04)
* Michael Hirst - Member of the British Parliament (1983-87)
* Edmund Ho - Chief Executive of Macau (1999-present)
* Hilbrand Nawijn - Dutch Minister for Integration (2002-2003)
* L. Glenn Perry - Chief Accountant United States Securities and Exchange Commission Enforcement Division (1982-1984)[35]
* Kevin Rudd - Australian Prime Minister (2007-present)
* Rita Verdonk - Dutch Minister for Integration and Immigration (2003–2007)
* Salmaan Taseer - Governor of Punjab Province, Pakistan (2008-present)

Other

* Leslie Ferrar - Treasurer to Charles, Prince of Wales
* Amr Khaled - Popular moderate Muslim preacher.
* Bruce Marshall - Writer
* Michael Peat - Principal Private Secretary to Charles, Prince of Wales
* Nate Silver - Managing Partner of Baseball Prospectus, creator of PECOTA baseball projection system,[36] and creator of political blog FiveThirtyEight.com.
* Paul Tisdale - Former football player
* Johan van der Walt - Forensic auditor
* Kateryna Yushchenko-Chumachenko - wife of Viktor Yushchenko, current President of Ukraine
* Bernard Avishai - Writer
* Paul Lieberstein - Screenwriter/Actor, The Office (US)
* Gibby Haynes - Lead singer, Butthole Surfers
* Barry Hearn - Sports entrepreneur

References

1. ^ a b KPMG International: HQ
2. ^ KPMG International names new Chairman
3. ^ KPMG 2008 revenues grow 14.5% to US$22.7 billion
4. ^ About KPMG
5. ^ a b c d e KPMG - History
6. ^ Ernst & Young, KPMG merger to create US juggernaut
7. ^ KPMG Consulting becomes Bearing Point
8. ^ >BearingPoint Seeks Bankruptcy Protection
9. ^ French Atos buys two KPMG consulting units
10. ^ Are they off their trollies? New Statesman article
11. ^ FTI Consulting Completes Acquisition of Dispute Advisory Services Business Of KPMG
12. ^ Accounting firms drawn into Madoff scandal
13. ^ Madoff-related class action filed in SDNY against Tremont Group, KPMG, others
14. ^ Handelsregister des Kantons Zug (Registration Number CH-020.6.900.276-5)
15. ^ KPMG: Leadership
16. ^ KPMG Global Services
17. ^ Working Mother
18. ^ 100 Best Companies to work for
19. ^ Extract from Training Magazine
20. ^ College Grad.com
21. ^ Best Places to Launch a Career
22. ^ Best 100 Companies
23. ^ Four day week as work dries up: KPMG offers 11,000 staff dramatic cut in hours to save jobs
24. ^ "Reasons for Selection, 2009 Canada's Top 100 Employers Competition". http://www.eluta.ca/top-employer-kpmg.
25. ^ KPMG agrees to settle Rite Aid suit.
26. ^ KPMG Pays $115 Million to Settle Suit
27. ^ Charge Against KPMG Dropped Carrie Johnson, January 4, 2007, Washington Post
28. ^ Prosecutors end tax-shelter case against KPMG, dropping charge after settlement January 3, 2007, International Herald Tribune
29. ^ KPMG Germany's Failure to Spot Siemens Problems Raises Questions
30. ^ Siemens Supervisory Board Proposes Ernst & Young As Auditors
31. ^ Fannie Sues KPMG for Approving Bad Numbers
32. ^ Report Assails Auditor for Work at Failed Home Lender
33. ^ KPMG and Xerox Settle Securities Lawsuit
34. ^ Mickelson signs agreement with KPMG LLP
35. ^ SEC News Digest, September 23, 1984
36. ^ 'Tis the season to project stats Jonah Keri, February 14, 2007, ESPN

External links

* Official international website
* KPMG in China website
* KPMG in China enewsletter
* KPMG Insiders news service
* Tax Me if You Can - documentary into corporate tax avoidance and its implications including the role of KPMG

比迷債更毒的星債

比 迷 債 更 毒 的 星 債 (詳解) -- 作者: 星債苦主

星債 Constellation 是這樣操作的

收集了投資者的資金後星展將全數資金買了抵押品 ---即合成CDO, 這些CDO是與約百間公司作信貸掛勾,( 但與星債的8間信貸掛勾公司無關), 此等CDO又有自己的爆煲條件, 例如 這百間公司中有10間以上破產或因很多公司破產,使加上來的總損失金額高於預定值, 這CDO就爆煲, 也可以引至本星債爆煲, 這爆煲條件沒有在銷售單張提及, 至於百間公司名稱, 多少間公司破產, 每間公司破產後損失金額多少, 總損失金額的預定值等資料星展不單於銷售時從沒有透露,連章程也無提及,明顯隱瞞風險。

這次雷曼爆煲與CDO無關, 但雷曼爆煲後(2008年的10月初) 巳爆星債的抵押品(CDO) 評級仍有AAA, (如系列59), 這顯示還很有價值, 現時的經濟比當時更呈好轉, 價值應當更高, 星展現畤沒有透露抵押品價格。

在雷曼未爆煲前, 星展每月收過百公司的抵押品的利息, 大部份自己收起, 其餘依星債條款給投資者,( 以系列59為例,年息為5.75厘) 爆煲後抵押品被星展全部沒收, 並以下列對苦主極不平等的公式計算贖回金 :

星債面值(苦主本金)

減去 雷曼相關債項的損失(註 A)

減去 抵押品的損失 (註 B)

減去 爆煲費用

註A :

相關債項的損失

= 星債面值(苦主本金) x [ 100% － 爆煲公司的相關債項價值 (以百分比表達] ].

註B:

抵押品的損失 =星債面值(苦主本金)－抵押品現價值。

星展為每間信貸掛勾公司訂定該公司的債券, 稱為相關債項, 例如系列59 雷曼的相關債項是 2017年到期雷曼5.75%債券, 8間公司就訂了8個公司各自的債券, 請注意, 星展沒有真正拿錢買此8間公司的相關債項(即債券), 所有本金買了抵押品, 這所謂8間公司的相關債項, 只是作為爆煲時計算損失之用。

如雷曼爆煲， 爆煲公司的相關債項價值 = 雷曼相關債項價值 = 9.75％.

相關債項損失 = [ 100% － 9.75% ] x [星債面值] = 90.25% [星債面值(苦主本金)] ， 即為 90。25％之本金損失。

這裏有兩個極重要的迷團 :

第一, 星展實際沒有買相關債項, 即無買雷曼的債券, 就談不上有損失

第二, 為甚麽 乘以星債面值, 而不是乘相關債項的面值。 八個掛鈎公司其中的一個公司爆煲, 卻是以100％本金計算公司相關債項的損失。 不僅僅跟銀行職員銷售提的 爆了一間只輸 八 份 一 完全不同！ 廣告也從沒有明確清晰地指出一個公司的破產事件對相關債項的損失是以100％本金作為的基準的，銀行職員也從未給客戶解釋過一個公司爆煲後提早贖回金的計算原則和方式。

提早贖回金其實 可以簡化為以下計算方式 ：

贖回金 = 抵押品現價值

＋ 爆煲公司的相關債項（％） x 星債面值(苦主本金)

－ 星債面值(苦主本金)

－ 爆煲費用;

這就顯示了提早贖回金的 計算 基本原則：出現一個破產事件的時候，是要抵押品的現價和爆煲公司的相關債項價值 去償還 100％ 星債面值(苦主本金) 外加 爆煲費用。 那麼，

(1）抵押品的現價高過 星債面值(苦主本金) 的機會是多少呢？

作為設計者的星展，完全明白這抵押品不是投入有實質資產的傳統債券或貨幣基金之類的傳統保值產品，，抵押品其實是投入於第二層信貸掛鈎產品，是跟諸多公司信貸掛鈎的CDO， 而且CDO 中的掛鈎公司的平均素質比這 8 個著名公司的評級要低。那麼，如果著名 8 個公司其中之一出現破產事件，需要提前贖回的時候， 這跟諸多公司信貸掛鈎的CDO抵押品的價格高過 星債面值(苦主本金) 的可能性 恐怕是近於 零吧？

(2）如果出現破產事件，通常的理解是，爆煲公司的相關債項價值 通常會便的很低的吧？

這兩個考慮加在一起，可以看出，以產品之抵押品之選擇，除了破產事件的時候，以抵押品的現價和爆煲公司的相關債項價值， 賠給星展 100％ 星債面值(苦主本金) 給爆煲費用之後。可以預期客戶可以得到的 贖回金的機會是零的。

對於提早贖回金這麼個重大風險因素，為甚麼作為設計者和銷售銀行的星展 ：

－ 不將此和風險明確寫出來了？除了用含糊的通用術語“可能會損失部分或全部本金”以外，星展 應該明確告知客戶：’一旦 有 1 個公司破產，就會用抵押品的現價和爆煲公司的相關債項價值 償還 100％ 星債面值， 具體請參見計算方式‘。這樣，就會給於客戶清晰明確無誤導的介紹。

－ 不明確要求银行职员跟客戶解释關於贖回金的计算原則和具體計算方式呢？

－ 不僅不明確要求銀行職員必須給客解釋提早贖回金的計算原則和具體計算方式，也沒有給於銀行職員合適的培訓給銀行職員提供的培訓中也從不提起提早贖回金的計算原則和具體計算方式？ 簡化之後的方式，是既體現專業信貸衍生交易業中的 的 CDS First-To-Default 的基本原則，也讓職員對於提早贖回金的 的計算原則和具體計算方式有清晰的瞭解。

贖回金 = 抵押品現價值

＋ 爆煲公司的相關債項（％）x 星債面值(苦主本金)

－ 星債面值(苦主本金)

－ 爆煲費用;

事實是，多數銀行職員也不知道提早贖回金的計算原則和具體計算方式。

這也是整個星債設計 狡猾 之處, 設計者一定知道爆煲後相關公司的債券價值值 以及相關債項会极低甚至接近零, 所以單是相關債項的損失已令贖回價接近零或等於零, 再加抵押品的損失及爆煲費用, 贖回價更是負數, {難道要苦主賠錢給星展??}

星展在爆煲前已收高息, (收多少息也無透明度), 爆煲後,星展施施然把當時AAA的抵押品袋袋平安, 得益更大, 在尊重合約精神和不可預計百年一遇的金融風暴的擋箭牌下,一個仙都不還給苦主, 自巳則坐擁苦主的血汗錢, 不管你遊行示威,不管苦主生病或跳樓 也無動於衷, 這世界還有公義嗎? 奇怪的是星展設計了這自巳必嬴, 投資者必輸的產品, 居然也能通過監管機構批核!

星展是有在銷售單張說明如遇信貸事件….. 會有很大損失, 但銷售員只強調產品很安全, 產品風險評級是2 , 是低風險, (風險評級應與產品全期可遇到的最高風險釐定, 而不是只計起始時的風險, 這才是最中肯的釐定), 如上述的計算方法, 星債設計者一早就知道爆煲的後果必定使投資者完全損失, 為甚麽不給產品極高風險的第5 級, 而去誤導投資者呢? 況且在實際的銷售過中, 大部份銷售員快速填表, 叫客人簽名, 盡力避免提及高風險字句, 更沒有說明爆煲公式, 因很費時又怕客人知真相後改變主意, 所以大部份投資者在沒有明白全部風險下簽了名,更甚者,有大部份銷售員為求佣金,歪曲事實, 只強調苦主買的是八間公司AAA的債券, 銷售文件也寫是債券, 無可能會爆煲, 這樣像是合情合理的解釋, 又是低回報的產品, 很容易使投資者墮入羅網。

星債是刻意包裝成低風險產品, (因只多收定期息少少,但要鎖着資金幾年), 放在大眾容易椄觸及信賴的銀行銷售, 容易吸引不敢冒險者,如老人家, 退休人仕,用畢生積蓄放心投入,加上銷售員佣金豐厚, 極力推銷, 說成與定期相約的低風險產品, 錯誤配對高風險產品給低風險的投資者, 違反証監會銷售指引, 應受遣責。

星展沒有派發章程給投資者, (有些甚至問了也不給), 銷 售單章只叫人閱讀章程, 但沒有給章程或網址, 怎樣閱讀,? 寫了等於沒寫, 是不是怕投資者知道眞相不買, 金管局宣傳叫人投資要溫功課, 連書都無怎樣温習? 星展如先給章程投資者拿回家看清楚, 不明再問銷售員, 直至確保投資者完全明白風險, 就不會發生今天的事件, 星展在銷售程序上巳犯了系統性錯誤, 可惜所有銷售文件及銷售員,均沒有如實解釋上述爆煲後的計算公式, 使投資者真正明白風險, 雖然在銷售單張說明會有損失很大,但這是不夠的, 因為只能說是選檡性披露, 沒有說明最關鍵及最重要的怎樣計算損失, 即沒有完全及如實披露風險。

銷售單張的版面設計很直覺引導人聯想是眞的買了掛勾公司的債券, 在掛勾公司的信貸評級表下面的註籜寫着 “此相關機構的相關債項均為後償債項….”難怪很多銷售員說爆了一間, 還有7間, 不幸的是, 星展把一間公司的損失反影到全部公司100％星債面值(苦主本金) 上，卻不敢象宣揚 "跟 八 個公司掛鈎 " 一樣，去跟客戶和銀行職員明確清晰地宣揚爆煲後的贖回金計算原則。

雖然星展強調合約精神, 但設計一些明知爆煲後會使苦主全部損失的劇毒星債。卻於銷售時全無披露贖回金的計算原則和計算公式, 是對投資者絶不公平。客戶購買星債的時候，對於星債的瞭解真是只知其一 （跟8個公司掛鈎），不知其二（不知一個公司爆煲後 的相關債項的損失是跟100％本金掛鈎的， 不知一個公司爆煲後 的 贖回金的計算原則和計算公式），更不知其三（不知抵押品本質又是跟諸多公司信貸掛鈎的無實質資產的產品），更不知此類產品，銀行應該讓客戶事先閱讀理解發行章程並盡職地給客戶解釋產品之真是特徵和相關風險 （證監會’操守准則‘），

系列34－37发行章程指出：

“ 分銷商將知會準投資者，本發行章程第53頁「可供查閱文件」所列的文件副本於本發行 章程第28頁所指明的安排人辦事處可供查閱”。 而 '可供查閱文 件' 包括 '有關已抵押資產的資 料，包括評級憑證、有關已抵押資產的條款及條件、及就有關已抵押資產刊發任何資 料大綱或類似發售文件（如已編製）’ 可供查 閱。

銷售銀行，尤其是身兼設計者和CDS掉期對手的星展銀行，是如何執行這個要求的呢？是如何對銀行職員進行相關培訓的呢？是如何給銀行職員做出相關的銷售指引的呢？

星債客戶等於是在不完瞭解星債的具體風險和沒有得到充分的相關重大資料的情形下被欺騙誤導，而簽了購買和約。>苦主們, 如果銷售員有向你解驛以上述的爆煲公式及使你完全明白風險, 你還會買嗎?

作者: 星債苦主

Constellation notes leaflet

Structured Retail Notes Series 67, 68, 69 and 70
USD and HKD Callable Credit-Linked Notes
Interest rate as high as 8.3 p.a.
Leap for enticing
potential returns!

The Notes are not principal protected

Issuer: Constellation Investment Ltd.

For every HK$100,000 (or equivalent) of Notes successfully purchased you will receive one HK$100 gift coupon.#
Investment based on solid foundation of global institutions

The Notes are credit linked to a basket
of 8 renowned institutions:

Reference Entity Credit Rating^
Goldman Sachs AA- / Aa3 / AA-
Merrill Lynch AA- / Aa3 / AA-
Morgan Stanley A+ / Aa3 / AA-
Lehman Brothers A+ / A1 / A+
Bear Stearns Companies Inc. A+ / A1 /A+
Standard Chartered Bank A+ / A2 / A+
Macquarie Bank Ltd A / A2 / A+
Swire Pacific Limited A- / A3 / A-

The credit ratings shown above next to each reference entity are those applicable to the reference entity as of 2 February 2007, as published by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”), Moody’s Investors Service, Inc. (“Moody’s”) and Fitch Ratings Ltd. (“Fitch”) respectively.

The reference obligation in respect of this reference entity is a subordinated obligation, which is subordinate in right of payment to its other senior and unsubordinated obligations. Upon a credit event, a Reference Entity’s subordinated obligation is likely to have a value which is substantially less than its senior and unsubordinated obligations, and therefore any credit event redemption amount is likely to be less than what would have been if the reference obligation was a senior and unsubordinated obligation. (As of 2 February 2007, the ratings for the reference obligation of Goldman Sachs are A+/A1/A+, Merrill Lynch are A+/A1/A+,Morgan Stanley are A/A1/A+, Lehman Brothers are A/A2/A, Bear Stearns Companies Inc. are A/A2/A, Standard Chartered Bank are A/A3/A and Macquarie Bank Ltd are A-/A3/N/A , from S&P, Moody’s and Fitch respectively. The Moody’s rating for the reference obligation of Standard Chartered Bank is provisional.)

Interest rate as high as 8.3% p.a. *, total potential return as high as 46.1%+*
Notes available in 5-year and 7-year tenors. Choose the one which best fits your own investment strategy

Quarterly interest payment*
Issue price fixed at 100% of principal amount regardless of market condition

The Notes are offered for a limited period only. Seize the investment opportunity, please contact our designated Distributors for details.
Remarks:
Interest rate for the seventh year for Series 67.
+ The sum of 7 years’ total potential interest for Series 67 Notes.

If a credit event occurs, or if the Issuer exercises the issuer’s call option or if * the Notes are otherwise redeemed early by the Issuer upon an event of default or for other reasons (for details, please refer to the Issue Prospectus),investors may not get all of the potential interest income. In order to receive interest payment, investors must hold the Notes (through custody arrangements as described in the Programme Prospectus dated 20 April 2006) on the relevant interest payment dates. Please refer to the Summary of Main Terms in the leaflet for the Notes and the Issue Prospectus for details of the interest rate applicable to each series of notes.

# Investors will receive a HK$100 PARKnSHOP gift coupon for every HK$100,000 (or equivalent) of Notes successfully purchased. For the avoidance of doubt, the amount of USD and HKD Notes successfully purchased by each investor shall be aggregated for the purpose of calculating the amount of gifts using the exchange rate of HK$7.8 per US$.

Terms and conditions apply. Please ask any Distributor for details relating to the gifts prior to purchasing the Notes. The gift coupon cannot be exchanged for cash and will not be replaced if lost. DBS Bank Ltd is not the merchant provider of the gift coupon and accepts no liability for the terms and conditions for using the gift coupon and/or the quality of goods and/or services provided by the merchant involved in this promotion. DBS Bank Ltd reserves the right to replace the offer of gift coupon with another offer of equivalent value without prior notice. If there are any disputes, DBS Bank Ltd retains the right to make the final decision.

Summary of Main Terms:
Issuer Constellation Investment Ltd.
Series
Structured Retail Notes Structured Retail Notes
Structured Retail Notes Structured Retail Notes

Series 67 Series 68
Series 69 Series 70

Interest rate1,2
In the first 6 years: 6.3% p.a. In the first 6 years: 5.6% p.a.
In the first 4 years: 5.6% p.a. In the first 4 years: 5.0% p.a.
p.a.
(payable quarterly in arrear)

In the subsequent In the subsequent
In the subsequent In the subsequent

1 year: 8.3% p.a. 1 year: 7.0% p.a.
1 year: 6.6% p.a. 1 year: 5.6% p.a.
Denomination
US$5,000 per Note HK$30,000 per Note
US$5,000 per Note HK$30,000 per Note

Minimum transfer One Note
amount / minimum
purchase amount
Issue price 100% of principal amount
Offer period
9:00am on 8 February 2007 to 4:30pm on 8 March 2007
(subject to early closure if a sufficient amount of the Notes are sold before this date, or extension to a date no later than 8 April 2007)


Issue date Expected to be 22 March 2007, but no later than 22 April 2007

Maturity date1
Expected to be 22 March 2014
(or, if applicable, such date as may be seven years following the issue date)
Expected to be 22 March 2012
(or, if applicable, such date as may be five years following the issue date)


“Bankruptcy” or “Failure to Pay” or “Restructuring” in respect of any of Credit event The Goldman Sachs Group Inc., Merrill Lynch & Co., Inc., Morgan Stanley, Lehman Brothers Holdings Inc., The Bear Stearns Companies Inc., Standard Chartered Bank, Macquarie Bank Limited and Swire Pacific Limited (For details relating to credit event, please refer to the section headed “What are our Notes” in Issue Prospectus) Redemption

If no credit event, early redemption event or event of default has occurred,
on relevant 100% of the principal amount of the Notes maturity date Redemption upon If a credit event has occurred, the credit event redemption amount will likely be credit event substantially less than the principal amount of the Notes Issuer’s

The Issuer has the right (but is not obliged) to redeem each Series of the Notes at 100% of the principal amount (in call option whole but not in part), together with accrued interest, on the interest payment dates scheduled to fall in March, June,
September and December of each year (from year 2 to maturity only but excluding the relevant maturity date).

The Notes will be secured by collateral and swap arrangements (as set out in the Issue Prospectus)

Collateral / Security
1. If a credit event occurs, or if the Issuer exercises the Issuer’s call option or if the Notes are otherwise redeemed early by the Issuer upon an event of default or for other reasons (for details, please refer to the Issue Prospectus), investors may not get all of the potential interest income.

2. In order to receive interest payment, investors must hold the Notes (through custody arrangements as described in the Programme Prospectus dated 20 April 2006) on the relevant interest payment dates. Risk Factors/Important Notice The Issuer of the Notes is Constellation Investment Ltd. (the “Company”). Certain text of this leaflet is extracted from the Issue Prospectus dated 8 February 2007. This leaflet is
issued by DBS Bank Ltd as Arranger for the Notes, who assumes responsibility for its issue and its contents.

This is a summary only of some of the principal features of the Notes. The Notes are not principal protected. Investments involve risks. You may lose all or part of your investment. You must carefully read the Issue Prospectus dated 8 February 2007 and the Programme Prospectus dated 20 April 2006 (as supplemented by the Addendum dated 23 August 2006 and the Further Addendum dated 2 November 2006, (together, the “Addenda”)) and any addendum to these documents together before deciding whether or not to invest in the Notes, and study in detail the matters and risks set out in the Programme Prospectus (as supplemented by the Addenda) and the Issue Prospectus, in particular the sections headed “How can I buy some Notes” and “Investment Risk”. The Programme Prospectus (as supplemented by the Addenda) and the Issue Prospectus and any addendum to these documents (which constitute our prospectuses) contain important information about the Company, the Notes and the programme under which the Notes are issued, which the Arranger has not attempted to summarise here. You should ensure you understand the nature of all the risks before investing in the Notes. Structured products such as the Notes are not suitable for inexperienced investors. If you are uncertain about the suitability of the Notes for your personal circumstances, you should consult your professional advisers. Ask any of the distributors for a copy of our prospectuses and whether any further addendum to any of such documents has been issued by us.

Secured nature of the Notes and Limited Recourse: Each series of notes will be secured by the Aaa and/or AAA rated (as at the issue date) securities purchased by the Company on the issue date with a principal amount equal or equivalent to the issue size of the relevant Notes and by certain swap arrangements entered into between the Company and DBS Bank Ltd as security for the Company’s payment and other obligations under the Notes. For each series of Notes, the Company’s obligations under the relevant swap arrangements and such series of Notes will be limited to the net proceeds of realisation of the collateral plus or minus the termination payments (if any) due to or payable by the Company under the relevant swap arrangements. No other assets of the Company will be available to meet any shortfall and no debt shall be owed by the Company in respect of such shortfall.

This leaflet is not a prospectus and does not, and is not intended to, constitute an offer of or an invitation to purchase or to induce an offer by any person to acquire or purchase or subscribe for or invest in the Notes anywhere. The offer of the Notes is made solely on the basis of the Issue Prospectus and the Programme Prospectus (as supplemented by the Addenda) together with any updating addendum or supplement which may be published by the end of the offer period and no application for the Notes would be accepted other than in accordance with the offering procedures set out in the Issue Prospectus. You cannot revoke your order for the Notes after you place your order, even though we have published and registered an updating addendum or supplement after you have placed your order for the Notes (unless we specify otherwise in the updating addendum or supplement).

The Securities and Futures Commission of Hong Kong (the “SFC”) has authorised the issue of this leaflet under section 105(1) of the Securities and Futures Ordinance. SFC authorisation does not imply the SFC’s endorsement or recommendation of the Notes referred to in this leaflet. The SFC takes no responsibility as to its contents.

Fitch Group (Constellation rating firm)

From Wikipedia, the free encyclopedia

Not to be confused with the financial printing and date company headquartered in New York City and also known as the Fitch Group.^[1].

The Fitch Group (technically, Fitch, Inc.)^[1] is a financial corporation whose divisions include Fitch Solutions, an advisory firm offering products and services to the financial industry, established in January 2008 partly following the criticism on Rating Agencies; Algorithmics Inc., the risk management software vendor and research firm; and Fitch Ratings, Ltd. Fitch Ratings is an international credit rating agency dual-headquartered in New York City and London. It was one of the three Nationally Recognized Statistical Rating Organizations (NRSRO) designated by the U.S. Securities and Exchange Commission in 1975, together with Moody's and Standard & Poor's.

The firm was founded by John Knowles Fitch on December 24, 1913 in New York City as the Fitch Publishing Company. It merged with London-based IBCA Limited in December 1997, and is majority-owned by Fimalac (From Wikipedia.fr: Fimalac), a French holding company. In 2000 Fitch acquired both Chicago, Illinois-based Duff & Phelps Credit Rating Co. (April) and Thomson BankWatch (December). Fitch is the smallest of the "big three" NRSROs, covering a smaller share of the market than S&P and Moody's, though it has grown with acquisitions and frequently positions itself as a "tie-breaker" when those other two agencies have ratings similar, but not equal, in scale.

Stephen W. Joynt is Chief Executive Officer of the Fitch Group. Joynt also serves as Chief Executive Officer of Algorithmics, Inc. and as President and Chief Executive Officer of Fitch Ratings.

Content 1 Long-term credit ratings 2 Short-term credit ratings 3 Criticism 4 Fitch Solutions 5 References 6 External links

Long-term credit ratings

Fitch Rating' long-term credit ratings are set up along a scale from 'AAA' to 'D', first introduced in 1924 and later adopted and licensed by S&P. Moody's also uses a similar scale, but names the categories differently. Like S&P, Fitch also uses intermediate modifiers for each category between AA and CCC (i.e., AA+, AA, AA-, A+, A, A-, BBB+, BBB, BBB- etc.).

Investment grade

• AAA : the best quality companies, reliable and stable
• AA : quality companies, a bit higher risk than AAA
• A : economic situation can affect finance
• BBB : medium class companies, which are satisfactory at the moment

Non-investment grade (also known as junk bonds)

• BB : more prone to changes in the economy
• B : financial situation varies noticeably
• CCC : currently vulnerable and dependent on favorable economic conditions to meet its commitments
• CC : highly vulnerable, very speculative bonds
• C : highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on obligations
• D : has defaulted on obligations and Fitch believes that it will generally default on most or all obligations
• NR : not publicly rated

Short-term credit ratings

Fitch's short-term ratings indicate the potential level of default within a 12-month period.

• F1+ : best quality grade, indicating exceptionally strong capacity of obligor to meet its financial commitment
• F1 : best quality grade, indicating strong capacity of obligor to meet its financial commitment
• F2 : good quality grade with satisfactory capacity of obligor to meet its financial commitment
• F3 : fair quality grade with adequate capacity of obligor to meet its financial commitment but near term adverse conditions could impact the obligor's commitments
• B : of speculative nature and obligor has minimal capacity to meet its commitment and vulnerability to short term adverse changes in financial and economic conditions
• C : possibility of default is high and the financial commitment of the obligor are dependent upon sustained, favourable business and economic conditions
• D : the obligor is in default as it has failed on its financial commitments.

Criticism

See also: Credit rating agency#Criticism

Credit rating agencies such as Fitch Ratings have been subject to criticism in the wake of large losses in the collateralized debt obligation (CDO) market that occurred despite being assigned top ratings by the CRAs. For instance, losses on $340.7 million worth of collateralized debt obligations (CDO) issued by Credit Suisse Group added up to about $125 million, despite being rated AAA by Fitch.^[2] However, differently from the other agencies, Fitch has been warning the market on the constant proportion debt obligations (CPDO) with an early and pre-crisis report highlighting the dangers of CPDO's.^[3]

Fitch Solutions

In 2008, in order to capitalize on products and services and enhance independence of the rating agency, a new division of the Fitch group was created, Fitch Solutions. Fitch Solutions hosts non-rating products and services, product developments and sales, and training services. The division activity includes deals valuation (as opposed to rating), data, research and both in-house and external training.

References

1. ^ ^{a b} "Timeline of Fitch Group". fitchratings.com. http://www.fitchratings.com/web_content/marcom/group_timeline.cfm.
2. ^ Tomlinson, Richard; Evans, David (2007-06-01), "CDOs mask huge subprime losses, abetted by credit rating agencies", International Herald Tribune, http://www.iht.com/articles/2007/05/31/bloomberg/bxinvest.php
3. ^ Linden, Alexandre; Neugebauer, Matthias; Schiavetta, John; Zelter, Jill; Hardee, Rachel (2007-04-18), First Generation CPDO: Case Study on Performance and Ratings, http://www.defaultrisk.com/pp_crdrv141.htm

External links

• Fitch Ratings
• Credit Raters Exert International Influence (washingtonpost.com)
• U.S. Credit: Fitch Ratings

Fitch Ratings' CDO (Collateralized Debt Obligation) Group covers a wide variety of increasingly complex transactions that are backed by various assets from Corporate, CMBS, ABS and other sectors. The CDO group is composed of individuals with diverse backgrounds from both corporate and asset-backed disciplines. As a result, Fitch brings a unified approach to the analysis and ratings of cash flow, synthetic and market value CDOs that leverages a thorough understanding of the structural aspects of securitization and an awareness of the various underlying assets and associated risks. The methodology also evaluates CDO asset managers based on defined quantitative measures as well as qualitative attributes.

Coverage
Fitch Ratings' CDO Group analyzes multiple asset classes including:
> ABS
> Alternative Investments (Hedge Funds, Private Equity Funds)
> Bank Loans
> CMBS
> Distressed Assets
> Emerging Market Debt
> High Yield Loans
> Mezzanine Debt
> Middle Market Loans
> Project Finance Loans
> REIT Debt
> RMBS
> Trust Preferred Securities

Fitch Ratings Launches New Rating Agency, Derivative Fitch

Related Market Sector:
CDOs

2006-10-18

Fitch Ratings-New York/London/Hong Kong-18 October 2006: Fitch Ratings today announced the launch of Derivative Fitch, the first specialist rating agency designed to provide the credit derivatives market with ratings, research, analytics and evaluation services that address the unique risks of the market.

With the credit derivatives market now approaching $33 trillion in notional value outstanding, the market has become a dynamic element of the global financial economy, as many participants utilize credit derivatives to manage their risk profiles. Unlike the traditional bond market, the structural complexity of the credit derivatives market is quite different as these instruments and securities are affected not only by risk associated with underlying assets but also heightened sensitivities to factors like credit stability and market risk. While hedge funds have been active participants in this market, traditional institutional investors, including pension funds, banks, insurance companies and fund managers, are increasing their participation in this market.

Moreover, while the role, use and performance of credit ratings are well defined in the traditional bond markets, credit derivatives investors and members of the global regulatory community have raised questions about whether traditional ratings alone completely address the risks inherent in the credit derivatives market.

According to a recent paper published by the Bank of International Settlements on credit derivatives, 'the one-dimensional nature of credit ratings based on expected loss or probability of default is not an adequate metric to fully gauge the riskiness of these instruments.'

The International Monetary Fund also recently published a paper mirroring the BIS's sentiments. 'Investors have shown a general preference for increased structural complexity and leverage, rather than greater credit risk. Going forward, rather than using more leverage, further innovations are expected to combine credit risk with other types of risk. The rating agencies should adopt a more differentiated rating scale for structured credit products.'

According to Fitch Ratings Chief Executive Officer, Stephen Joynt, 'credit rating agencies have long played a vital role in helping give investors an informed and valuable third party perspective on credit risk. We've been very successful in the bond markets and today we continue our task of delivering prospective third party ratings, research and evaluation services focused on addressing the specific and expanding needs of the derivatives market.'

Derivative Fitch Today:

Over the past several years, Fitch has invested in and furthered its expertise in the credit derivatives market. In forming Derivative Fitch, the company will consolidate over 100 professionals from its global CDO (Collateralized Debt Obligation) and Structured Credit ratings groups and related complimentary products, analytics and modeling groups to exclusively focus on this market.

Fitch's continuing dialogue with market participants and its ongoing research have revealed that the knowledge requirements that investors need to actively participate in this market are different and broader that those needed in the bond markets. Sound investing requires an integrated perspective on credit and market risk, pricing and liquidity. While the single name swap and index markets are now quite liquid, the newest and most complex product markets are different; private, customized, illiquid and opaque. As with any market, investors with comprehensive understanding of these markets and instruments can make better decisions. The central goal of Derivative Fitch's ratings, products and services is to offer such an improved perspective for investors.

In addition to ratings, some of the products and services that will operate under the Derivative Fitch name include:

--Vector 3.0, a benchmark model for assigning ratings to derivative products;

--Stability Scores, a new service for synthetic CDOs that references corporate portfolios and provides insight into the prospective stability of credit ratings;

--Risk Analytics Platform for Credit Derivatives (RAP CD), a market risk assessment service for synthetic CDOs; Fitch also recently acquired the credit derivatives pricing and risk analytics models from Reoch Credit Ltd and announced a partnership with Markit Partners to incorporate their suite of credit derivatives data and tools into RAP CD;

--Valuspread, a derivatives pricing service enabling market participants to meet their internal and external regulatory requirements and assists investors in accurately assessing and pricing credit risk;

--FitchCDx, an internet based research platform.

'Fitch Ratings has consistently shown both leadership and innovation in its ratings, research and tools to help issuers and investors understand and adapt to an evolving market environment. Creating a stand alone company devoted to the derivatives sector demonstrates our commitment to the important needs of this market and will encourage the innovation and independent thinking needed to address them going forward,' Joynt added.

About Derivative Fitch:

Derivative Fitch is an independent provider of a suite of products and services for the credit derivatives market. The company's goal is to enhance understanding of risk and improve market transparency in the growing credit derivatives sector. As a full service ratings agency, Derivative Fitch focuses on delivering innovative analytics and technology-driven portfolio evaluation solutions by expanding the tools and methodologies used to analyze the credit stability and market risk that characterize structured credit products. A wholly owned subsidiary of Fitch Ratings, the new company is comprised of over 100 professionals in New York, London, Hong Kong, and other major financial centers around the world. For more information, visit 'www.derivativefitch.com'.

About Fitch Ratings:

Fitch Ratings is a leading global rating agency committed to providing the world's credit markets with independent, timely and prospective credit opinions. Built on a foundation of organic growth and strategic acquisitions, Fitch Ratings continues to increase its market presence throughout the world and across all fixed income markets. Fitch Ratings is dual-headquartered in New York and London, operating offices and joint ventures in 51 locations and covering entities in more than 90 countries. Fitch Ratings is a wholly owned subsidiary of Fitch Group, Inc., which is a majority-owned subsidiary of Fimalac, S.A., headquartered in Paris, France.

Contacts: Rachel Hardee, Hong Kong, tel: +852 2263 9918/ rachel.hardee@fitchratings.com; Andrea Muller, Singapore, tel: +65 6336 6801/ andrea.muller@fitchratings.com

Media Relations: Ching-Yuen Lock, Singapore, Tel: +65 6238 7301; Sylvia McKaige, Singapore, Tel: +65 6336 0095.


Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.



Eldon House, 2 Eldon Street, London, EC2M 7UA

CONSTELLATION NOTES

SERIES 34-37, 43-46, 55-58, 59-62, 63-66, 67-70, 71-74 AND 78-81
(TOGETHER, THE “NOTES” AND EACH, A “SERIES”)
CREDIT EVENT IN RESPECT OF LEHMAN BROTHERS HOLDINGS INC.
FREQUENTLY ASKED QUESTIONS

6 OCTOBER 2008

This document has been prepared for information only in respect of the Notes, which were issued under the US$5,000,000,000 Limited Recourse Secured Note Programme of Constellation Investment Ltd arranged by DBS Bank Ltd.

This document is based on publicly available information, and whilst every effort has been made to ensure that the response to the FAQ below is accurate as at the date this document is issued, DBS Bank Ltd makes no representations or warranties in respect of it.

This document should not be treated as legal or financial advice. No one reading this document is entitled to rely on it as legal or financial advice. Investors should seek independent professional advice with respect to their own positions.
1. Has an independent institution been appointed to ensure a fair and transparent valuation process for the credit event redemption amount for the relevant Series of Notes?

To provide continued assurance that DBS Bank Ltd is acting in our customers’ best
interests, DBS Bank Ltd has appointed an independent institution,international accounting firm KPMG, to ensure a fair and transparent valuation process for the credit event redemption amount for the relevant Series of Notes.

The calculation of the credit event redemption amount for the relevant Series of Notes is expected to be completed on or about 24 October 2008. DBS Bank Ltd will inform the relevant distributors as soon as practicable after the credit event redemption amounts are determined.

Hong Kong betwixt and between

By Howard Chao and Neil Campbell, O'Melveny & Myers

Published March 10, 2009 at 2:15 PM

With the full force of the financial crisis now breaking around the world, ironically these unique attributes are why Hong Kong is hurting. Like other financial centers, Hong Kong's financial services sector has suffered -- the Hong Kong Stock Market index has been decimated (down 53% since the start of last year) and international financial institutions have laid off probably thousands of bankers in Hong Kong since the last quarter of 2008. There have been very few initial public offerings on Hong Kong's formerly vibrant stock market since last summer.

The collapse of Lehman Brothers Holdings Inc. has triggered the "mini-bonds" affair, with many retail investors complaining they should not have been sold close to $2.5 billion of complex structured investment products (including $1.78 billion worth of mini-bonds, or credit linked notes) now gone sour, and the government has the vexing political problem of how to handle the frequent public demonstrations by retail investors calling for accountability from individual banks that sold the mini-bonds and the government.

No local Hong Kong financial institution has suffered significant impairments to capital, but a number of international banks with significant Hong Kong businesses have recently come under greater scrutiny and pressure from their home market investors. Global banking groups such as HSBC Holdings plc and Standard Chartered plc, with dominant positions in the Hong Kong banking sector, have both announced large rights issues to bolster their capital positions. Notably though, neither has asked for emergency government funding, unlike some of the other major international banks.

Many international banks have pulled back their lending activities in Hong Kong, leaving some local companies scrambling for funding. It is questionable whether Hong Kong's local banks can fill this credit gap. This may be the inflection point where the huge mainland Chinese banks increase their market share in Hong Kong, and perhaps elsewhere too.

In the trading sector, container throughput slumped a staggering 23.2% in January 2009 compared with a year ago and is expected to worsen in the coming months. Property and retail, Hong Kong's two other key sectors, are riding a serious downdraft with property prices in the exclusive Peak area dropping 41.4% in the last quarter of 2008 compared with the prior quarter and the number of home loans under water quadrupling in this last quarter, raising the prospect of a significant increase in personal bankruptcies.

The overall retail sector has held up reasonably well, but luxury sales have declined and consumers are starting to pull back.

Local government officials are also under heavy pressure. In response to the crisis, Financial Secretary John Tsang has proposed a stimulus package as part of the government's budget for the coming fiscal year. This includes a spending plan of $5 billion for infrastructure development and a $205 million program to create 62,000 jobs and internships for new graduates. Many critics panned the budget as disappointingly conservative -- many felt that given the strength of the Hong Kong government's balance sheet (projected to have $62 billion in fiscal reserves in its fiscal year ending March 2009) a more robust plan was called for. But one cannot help wonder how much difference the small Hong Kong government can make in the face of the mounting storm.

It is in difficult times like these, ever since her return to Mainland rule in 1997, that Hong Kong looks to China as a source of support and comfort. China looms large above Hong Kong's political and economic landscape. Almost all large Hong Kong companies now rely heavily on China for business, and the Hong Kong government consults with Beijing on all important decisions. The extraordinary growth of China has been a boon to Hong Kong, and it is hoped that China will be able to weather the crisis better than most, thereby sheltering Hong Kong too.

Further, China intends to look after Hong Kong, announcing in December various measures to bolster Hong Kong's economy. Most important are: a commitment to maintain Hong Kong's status as a regional financial hub, including a $29.3 billion currency swap pact to stabilize Hong Kong's currency and ease a cash shortage in Hong Kong; supporting the listing of mainland companies in Hong Kong; allowing qualified companies to settle trade obligations in Hong Kong in RMB; commencing construction of a bridge linking Hong Kong, Zhuhai (China) and Macau; and further opening up China's service sectors to Hong Kong companies.

At the same time, Hong Kong must deal with the rise of Shanghai. While no parent likes to admit it favors one child over another, it seems pretty clear that China hopes Shanghai will eventually assume the lead role as China's financial capital, with Hong Kong as the offshore financial center. The Chinese government now requires all state owned enterprises that plan to list to do so first in China before they can list in Hong Kong.

With the crisis, the shortage of international capital has accelerated the trend for Chinese companies to look increasingly for domestic sources of capital funding, and more business will gravitate toward China's domestic capital markets. Helping this trend is that the Shanghai A Shares Index is up about 13.2% this year, among the best performing markets in the world for the period. China has also announced the establishment soon of the new Growth Enterprise Board of the Shenzhen Stock Exchange, which will make it easier for smaller Chinese enterprises to list domestically in China.

Of course, the dearth of IPOs has not helped Hong Kong. Once the markets come back, it will be interesting to see whether Hong Kong will be able to continue to attract the massive Chinese IPOs that it did the past few years, or whether the trend will be to stay onshore. It is noteworthy, however, that all of the major international securities firms have or are trying to set up joint venture domestic securities firms to cover the burgeoning domestic capital markets of China.

It will also be interesting to see how in Hong Kong, the land of laissez-faire, policymakers react to the global trend toward consolidated prudential oversight of the financial services sector and greater state involvement in the economy. Of course, the crisis did not originate in Hong Kong and, other than the mini-bonds case, there are no general complaints about the regulatory system in Hong Kong. Martin Wheatley, head of Hong Kong's Securities and Futures Commission, summed it up: "What has gone wrong in Hong Kong did not start here -- it is the affect of failures in the U.S. ... Hong Kong's system has broadly worked well. We have not had an institutional systemic failure, which I think is important for Hong Kong because many other markets do. We do have a problem of retail selling, and we need to put that right. However, whether we need to throw out the entire regulatory structure and re-develop it in light of the failure that we have had is a very big question, and one which requires careful and balanced consideration."

Nevertheless, the reality is that with the West moving toward tighter regulatory controls to avoid systemic risk and China having always been tightly regulated, Hong Kong ironically is now the odd man out. Hong Kong will feel the international pressure for all financial regulatory systems in the global network to become harmonized. One model being considered, as in the U.S., is the creation of a central regulatory agency to be responsible for systemic risk and prudential oversight, to supplement existing sector-specific regulatory agencies. But at least Hong Kong has been able so far to avoid the need for emergency state ownership of private financial institutions and other companies, which is more than can be said now for most of the capitalist world.

So there sits Hong Kong, betwixt and between state-capitalist mother China and the collapsed financial markets of the West. Hong Kong, a part of China, may be the last bastion of pure capitalism in a world where China and the rest are converging to a more government-dominated economic model. It seems unlikely that Hong Kong can remain an island.

Howard Chao heads the Asia practice of O'Melveny & Myers LLP and Neil Campbell is a partner in the Hong Kong office specializing in finance. Edward Bong provided research assistance in preparing this article.