Angry investors in Hong Kong and Singapore began protesting last month over losses they suffered due to the collapse of Lehman Brothers credit-linked notes. Also known as mini-bonds, their value is now at pennies on the dollar, and investors want banks to buy the credit-linked notes back from them.
Investors of Lehman mini-bonds have experienced devastating losses. Reports indicate that financial service firms told Asian investors that Lehman Brothers mini-bonds were a safe alternative to fixed deposits.
Over 30,000 Hong Kong investors suffered losses in Lehman Brothers mini-bonds. Close to 10,000 investors in Singapore could lose more than $338 million dollars as a result of the mini-bond collapse. Last month, 600 Singaporean investors attended a public meeting to ask banks why they sold them Lehman Brothers credit-linked notes. Now, investors in the US that also were influenced by similar marketing messages about Lehman Brothers bonds and other “safe” investments are contacting investment fraud attorneys about filing arbitration claims and lawsuits.
Some lawyers are asking how such an overconcentration of mini-bonds, as well as Freddie Mac and Fannie Mae shares, managed to end up in the portfolios of senior investor who cannot afford to take the kind of financial hits that have come with the market collapse. For example, since July, some Fannie Mae shares have dropped in price from $19.50 to $1.40.
While investor claims against broker-dealers had dropped steadily since 2003 (the lowest number of claims ever, at 3,228, was in 2007), FINRA has already received at at least 3,469 claims this year.
Related Web Resources:
Financial Crisis Politically Awakens Singapore Investors, Reuters, November 7, 2008
If you are an investor who has suffered losses because you were mislead into thinking you were making a “safe” investment, our investment fraud law firm would like to talk to you. Contact Shepherd Smith Edwards & Kantas LTD LLP today.