THE TEMASEK REVIEW

To: President Obama

Through

American Embassy
27 Napier Road
Singapore 258508
Main Tel. No: (65) 6476-9100
Main Fax No: (65) 6476-9340

Mr President,

As you grace our country with your presence during these APEC meetings, we beseech you to take some time off your meeting schedule to meet with MAS Chariman Goh Chok Tong, Finance Minister Tharman and bank CEOs to discuss compensation measures for minibond holders and investors that have lost entire life savings due to your predecessor’s failure to bailout Lehman Brothers in 2008.

A total of S$375 million (US$258 million) worth of Lehman-linked structured products was sold to 8,000 retail investors who did not have the financial acumen to understand the risks of these complicated products. The total number of structured products, which value evaporated overnight, is closer to S$500 Million.  Our misplaced faith in the US banking and financial regulatory system, together with predatory sales tactics, had left us exposed to the whims and fancies of ruthless bankers and the former Treasury Sec. Hank Paulson.

Minibonds investors in Singapore have been filing complaints and lawsuits against various financial institutions, but many lack the resources to proceed with the lengthy and costly litigation process.

The spillover damage has also been hefty. Eight town councils in Singapore – institutions entrusted with funds meant for the maintenance and running of Public Housing facilities – had about S$16 million invested in troubled structured products.

The effort of some (e.g. Great Eastern Life) to redeem the original capital injection value of these products is but a drop of water in an ocean of judiciary irresponsibility. While three of the US biggest banks have exited the Troubled Asset Relief Program (TARP) – a fund meant to save financial institutions from collapse – and handed out US$29.7 billion in bonuses, Singaporean investors are left wondering where was the Lehman Brothers Rescue?

Here in Singapore, investors holding credit-linked notes linked to Lehman Brothers had received no coupon payments (as of Oct this year) toward the end of the grace period. Yet another event of default as US banks trade TARP funds for bonuses.

Many people have the mistaken impression that investors have been assisted by the Singapore to get a fair compensation. This is the impression is forged by the streams of feel good press statements that misguide the uninformed reader.

The truth is, Singaporean investors have been shortchanged. Less than 20% has been compensated, while our neighbours in Hong Kong and Taiwan are getting more headway as 777 Singaporean investors continue to be ignored by Prime Minister Lee who declined to meet the investors or to delegate his officials to resolve this issue. Not much else has transpired as Singaporeans are ignorant of their human or contractual rights and unable to seek redress outside of governmental assistance due to years of a nanny state under the Lees.

Former CEO of NTUC INCOME Mr Tan Kin Lian had been an earlier crusader for our rights and we thank him for it. It heartens me that our plight is not forgotten and that Mr Yap Keng Ho is reigniting the spirit of justice.

A few affected investors and I are standing behind Mr Yap’s open call for resolution and invitation to gather at Speakers’ Corner. In the spirit of American’s 1st amendment, we will gather at Hong Lim Park and make our demands heard. Demands that the US be held culpable for its fair share in this debacle.

Mr President, Although you did not preside over this debacle, the current injustice is within your reach to fix.

Yours Sincerely,

Anthony Lee

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