Hong Kong Minibond distributors may buy back products
Hong Kong distributors, which sold Lehman Minibonds to retail investors, could possibly buy back the products at the prevailing market price under a proposal put forward by the Hong Kong financial secretary. Under the proposal the trustee of the Minibonds (HSBC Bank USA , National Association, Issuer Services) has agreed to disclose to the distributors details of the underlying collateral of the products and allow them to buy the products back instead of embarking on a liquidation process.
“The proposal was met with a positive response from some banks while other distributors have also undertaken to give it serious consideration,” says John Tsang, financial secretary of Hong Kong. “It will avoid the need for investors to go through a long and tedious liquidation process and will enable the investors to get some of their money back quickly.”
Meanwhile the Hong Kong Monetary Authority (HKMA) says it has received 5,567 complaints from retail investors alleging improper selling of
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