Letter to Classmates: the Lehman Brothers Saga of 2008

Dear classmates from La Salle, U. of Minn and Oregon State Univ,

Peole knowning me always thinks that I don't like earning money for high profit. But I become one of the 48 000 victims of the Lehman Brothers (LB) Saga that began on 15.9.2008 in Hong Kong. But now people changed the view of me as an outgoing person for now.

My purpose is to let as many people as possible know my lessons learnt from banks as more and more people I knew did fell into their traps and are still getting nothing back.

Quite unexpectedly during the past 3 years, I turned myself from a soft-spoken and shy person to become one internet reporter reporting on the streets on HK gov. cover up of Banks mis-selling frauds to international media. My stories were read by people in USA, Russia, China, Canada, Britian, Poland, Taiwan. I now made friends with half of the members of Legco and even become a party member of NPP. I have the courage to face the camera in attacking HK gov. because we consider that the LB Saga is a social issue that we must fight for justice. We have to reverse the public misconception and tell the true story.

Firstly, after three years of protest by LB victims, nobody expects these banks will ever give in. Complaints to HKSAR government, The Ombudsman, HKMA were shut off. Help from LegCo Members, media has been almost exhausted. The success of getting our money back is still going on because we fight with a cause – righteousness. It is a matter of right or wrong and we believe we are right and we have the determination that we will win. It is LB victims organize themselves to put up a long battle with demonstrating in Central, Monday through Saturday, and attending rallies, 港台直播節目《城市論壇》on Sundays, etc. Each team mate has a role to play and contributes his talents, expertise, resources and time for the cause of justice. Together we form a league to help each other like brothers and sisters and have overcome most difficulties and obstacles.

Secondly, the HKSAR Government collaborates with the banks to play down the debacle and regards it as a commercial dispute. They segregate the majority of the LB victims, some 30 000 Minibond holders, from the other victims holding DBS Constellation, Octave Notes and other LB structured notes with a minimum value of $500,000.

In July 2009, while Mr. Martin Wheatley, the ex-CEO of Securities and Futures Commission (SFC), was on holiday, the 60% - 70% Minibond repurchase agreement was formulated. This offer silenced most of the Minibond victims and misled the public that the LB Saga has been resolved. Yet, some determined Minibond victims were persistent to fight on, and eventually won the brilliant final offer of up to 95% in June 2011. Protests from other LB victims are continuing. Never in the history of Hong Kong records a protest that can last for three years.

In the mean time, banks have been pumping millions of dollars to place newspaper ads to ensure no more negative voice from the editors. Banks are loaded to launch expensive media campaigns against the victims. Just look at the half page ads by a group so-called 「一羣中環金融從業員」 in recent major Chinese and English papers and a full front page coverage on 20.6.2011《星島日報》, targeting us as greedy trouble makers that are「輸打嬴要」. As a consequence, many of my friends have been mis-informed.

We don’t have any expectation from the present Chief Executive 曾蔭權, nor Financial Secretary 曾俊華, nor Secretary for Financial Services and the Treasury陳家强who admitted in the LegCo Subcommittee that he had no knowledge of Minibond before the LB Saga. From my 30 years of public service, I have never seen a more appalling ruling party like the existing one.

Thirdly, LB victims try to seek justice and expect the Judiciary will play an impartial role. To our astonishment, our application for leave of the July 2009 Minibond repurchase agreement was turned down. To our even bigger surprise, the Secretary for Justice黃仁龍chose to prosecute two front line bank staff after two years of investigation by police and does not take any action on the banks. Naturally, the defendants had no criminal intent and they were subsequently acquitted after the show.

Fourthly, Hong Kong Monetary Authority (HKMA) has done nothing to reprimand the banks in the LB Saga. As far as complaints from bank victims are concerned, there is no established case. I was disgusted by its CEO Mr. Yam Chi Kong when he gave evidence during the LegCo LB Subcommittee hearings. HKMA is not doing its job to ensure protection of small investors.

Let’s look at the other securities watchdog, Securities and Futures Commission. Only 4 months after the LB debacle, SFC reprimanded Sun Hung Kai for mis-selling of LB Minibond. Soon afterwards all securities institutions involved in mis-selling of LB products made restitution to its clients. Mr. Wheatley is a man with mission and principle. Sadly, he has to give up the CEO job in Hong Kong and take up another one in UK that he will earn less than half of his present one. Small investors of Hong Kong will miss him.

Lastly, there are still many victims that do not receive any compensation and the fights will go on and especially against those high gov. officials involved with banks mis-selling frauds cover up.