Script

Title : the YESTERDAY! show
Host : Leong Zhi Wei
Mr Lee (Victim) : Gary Lee Yi Cheng
Mr Yong (Financial Analyst) : Yong Pei Wei
MAS : Lee Yue Yang
Ex-CEO of Lehman Brothers (CEO) : Lee Qi Xian

Host:
Alright. Welcome to the Yesterday show! As we all know, the recent sub-prime crisis has affected a lot of investors from all over the world.

In Singapore, a lot of investors have also lost their investment in the DBS High Notes and the Lehman Brothers’ Minibonds.

So today, we have invited 3 individuals with us to share with us their experience.

First, we will invite Mr Lee, he has lost all his savings on these products

Mr Lee:
When I first buy the minibonds ah, the xiao jie (lady) never tell me any risks. She only said that the investment is risk free, safe and can earn more than the fixed deposits.

The terms and conditions are all in English. I don’t understand anything. I also never go to school. Then ah, now I lose everything. I so old already. I lose all my savings. I have to work, you know, work in MacDonald.

Host:
Alright. Thank you Mr Lee.

Ok. So now, we will hear from Mr Yong, an investment analyst from Bank of Zimbabwe to share with us some of his thoughts on the issue.

Mr Yong:
Structured products such as the Lehman Brothers’ Minibonds and DBS High Notes are highly complex products.

For example, the DBS High Notes is based on 8 banks known as “reference entities”. Investors gamble that none of these 8 banks will fail. If one single bank does fail, the DBS High Notes will become worthless.

Unfortunately, Lehman Brothers, which happened to be one of the 8 reference entities failed. This rendered the DBS High Notes as well as other structured products which has Lehman Brothers as a reference entity, worthless.

Host:
Ok. Thank you Mr Yong.

Yes, indeed structured products are very complex and very hard for a normal investor to understand.

Ok. So now, we have with us a representative from MAS to share with us some safeguards that MAS have in place.

MAS:
Thank you Mr Host.

Yes, the MAS have implemented several new safeguards to protect consumers’ interests in the future as well as to prevent banks from selling risky products indiscriminately.

Firstly, financial institutions must provide simple and user friendly product highlight sheets for complex investments. In the past, all these information is only disclosed in lengthy documents which investors, such as yourself neglect to read, so this new rule will solve the problem.

Secondly, prospectuses must be clearer for investors and advertising material must disclose risk. In the past, financial institutions did not disclose risk in the marketing stages and this may mislead investors.

Mr Lee:
Why this information never comes earlier!!

MAS:
Well it always takes mistakes for people to learn.

There will also be a new category of “complex products”, which cannot be sold to investors without professional advice. The scope of these complex products would have included the DBS High Notes 5 as well as the Lehman Brothers’ Minibonds.

Bank tellers will also be barred from selling investment products to customers over the counter or pushing customers to representatives who sell these products.

Finally, there will be a 7 days cooling off period so that investors who have bought these products can reconsider their decision and exit without incurring any charges.

Mr Yong:
Yes and most importantly, investors should always understand the products that they are buying. If something is too complicated to understand, then they should avoid it because they cannot measure the risks that they are taking.

The measures that MAS has implemented will go a long way towards protecting investors and as well as preventing a similar situation from arising again.

Host:
Thank you all our guests for your time. Now, we have a special guest, we have invited the ex-CEO of Lehman Brothers. Let’s all welcome him

CEO:
It’s not my fault. It’s not my fault

Mr Lee:
Then whose fault is it?

CEO:
Don’t make your problem…..

Mr Lee:
Not your fault! Not your fault! Not your fault!

MAS:
AIIIIEEEEIIEIEIEEEEEEEEEEEEEEEEEEE!!!!!!!!!!!!!!!!!!!!!!

Host:
Looks like our guests are “expressing” some unhappiness to the CEO.
So, maybe we will end the show here and thank you for joining with us.
See you all again next week.