Hundreds of Lehman investors protest in Hong Kong
Hundreds of angry Lehman Brothers investors rallied in Hong Kong on Sunday to demand the government help secure their money after the U.S. investment bank collapsed this past week.
By Agencies |
HONG KONG: Hundreds of angry Lehman Brothers investors rallied in Hong Kong on Sunday to demand the government help secure their money after the U.S. investment bank collapsed this past week.
The investors, many of them nearing or at retirement age, waved investment papers and chanted slogans outside the territory's government headquarters as they accused regulators of not doing enough to safeguard their interests.
``This is all my money,'' said Peter Wang, 62, a former furniture store owner who said his entire retirement savings, about 2 million Hong Kong dollars (US$256,000), was tied up in Lehman-backed bonds.
Albert Ho, head of Hong Kong's Democratic Party, which helped organize the rally, criticized the government for not taking more steps to educate investors in Lehman products, including complex bonds tied to the performance of the territory's equities market.
He and other organizers said about 800 people joined the demonstration; police did not offer an estimate.
Billions of dollars in souring debt forced Lehman Brothers Holdings Inc., once the fourth-largest investment bank in the U.S., to file for bankruptcy last Monday amid the world's worst financial crisis in decades.
Responding to growing public ire, Hong Kong regulators contacted Lehman management and met with investors in the bank's bonds over the weekend, the government said in a statement.
Regulators vowed to investigate complaints that local banks which sold Lehman Brothers investment products failed to properly disclose connections to the U.S. company. But they warned investors might recover ``substantially less'' than the original amount.
A message left with Lehman Brothers in Hong Kong was not immediately returned.
Brian Fong, 45, who works at a private security firm, said he invested about HK$1.3 million (US$167,000) saved over the last 20 years in a Lehman bond purchased through a local bank.
When news of Lehman's bankruptcy broke, he frantically called bank officials for answers. But he said the bank still hasn't said for certain what will become of his investment.
``I feel terrible. I'm afraid I will lose everything,'' said Fong, adding his wife will have to go back to work instead of caring for their 10-year-old son if they don't recoup their money.
``We never expected this,'' he said. ``I believed it was safe.''
The investors, many of them nearing or at retirement age, waved investment papers and chanted slogans outside the territory's government headquarters as they accused regulators of not doing enough to safeguard their interests.
``This is all my money,'' said Peter Wang, 62, a former furniture store owner who said his entire retirement savings, about 2 million Hong Kong dollars (US$256,000), was tied up in Lehman-backed bonds.
Albert Ho, head of Hong Kong's Democratic Party, which helped organize the rally, criticized the government for not taking more steps to educate investors in Lehman products, including complex bonds tied to the performance of the territory's equities market.
He and other organizers said about 800 people joined the demonstration; police did not offer an estimate.
Billions of dollars in souring debt forced Lehman Brothers Holdings Inc., once the fourth-largest investment bank in the U.S., to file for bankruptcy last Monday amid the world's worst financial crisis in decades.
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Responding to growing public ire, Hong Kong regulators contacted Lehman management and met with investors in the bank's bonds over the weekend, the government said in a statement.
Regulators vowed to investigate complaints that local banks which sold Lehman Brothers investment products failed to properly disclose connections to the U.S. company. But they warned investors might recover ``substantially less'' than the original amount.
A message left with Lehman Brothers in Hong Kong was not immediately returned.
Brian Fong, 45, who works at a private security firm, said he invested about HK$1.3 million (US$167,000) saved over the last 20 years in a Lehman bond purchased through a local bank.
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When news of Lehman's bankruptcy broke, he frantically called bank officials for answers. But he said the bank still hasn't said for certain what will become of his investment.
``I feel terrible. I'm afraid I will lose everything,'' said Fong, adding his wife will have to go back to work instead of caring for their 10-year-old son if they don't recoup their money.
ADVERTISEMENT
``We never expected this,'' he said. ``I believed it was safe.''
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