Lehman minibond investors to get more compensation
Macau’s ‘central bank’ buys Portugal’s debtIan Sio Tou and Gilbert HumphreyMacau’s Lehman minibond investors, who lost their money in 2008 when the Lehman Brothers – then the fourth largest investment bank in the United States – went bankrupt, will receive more compensation under the local financial sector’s initiative modelled on Hong Kong’s “final” settlement offer announced earlier this week.
Macau Monetary Authority (AMCM) Chairman Anselmo Teng Lin Seng told reporters on the sidelines of a reception held at the AMCM headquarters on Guia Hill yesterday that under the local banking sector’s new offer, Macau’s Lehman minibond investors would get back “at least 80 percent or more” of their total investment.
Hong Kong’s financial sector announced on Sunday that the 16 banks that sold minibonds linked to the ill-fated US company have agreed to repay the city’s about 40,000 Lehman minibond investors up to 96.5 percent of their investment.
Continued on p.2Lehman minibond investors to get more compensationContinued from p.1Ian Sio Tou and Gilbert HumphreyAccording to Teng, three of Macau’s four banks involved in the controversy involving about 70 million patacas have already agreed to pay more compensation to the 1,104 local investors who lost their money in the scandal, while the other one is expected to follow suit soon. Macau banks involved in the case had previously settled the issue by agreeing to pay local investors 70 percent of their investment. Teng said that only two local investors had not received the compensation, while the others had already received 70 percent of their investment.
He pointed out that one of the two investors refused to sign the agreement, while the other one could not be reached.
Under the new offer, the local investors are supposed to receive different kinds of compensation depending on the different types of bonds they bought and using the new “80 percent or more” rate for the compensation, which according to Teng would end up giving the local Lehman minibond investors more in compensation.
He made it clear that those who had already received 70 percent of their investment will receive the remaining compensation still owed to them under the new settlement offer.
In addition, those who are not professional investors are eligible for an extra five percent from their total investment, Teng said.
Meanwhile, Teng also told reporters yesterday that the local government had bought “some” Portuguese Treasury bills on several occasions since the beginning of this year.
“I shall say we [local government] have bought some but, please accept my apology, it’s not convenient for me to disclose the exact amount.”Asked when the local government last bought the Portuguese Treasury bills, Teng replied, “I don’t remember … It was recently; very recently.”He did not rule out Macau buying more Treasury bills from Portugal in the future, underlining, “In fact we have been following the market in Portugal very closely […] also including the European bond market. When we see opportunities of course, assessing the risks and other things in line with our guidelines, we shall then decide whether we’ll go ahead [buying more European debt] or not.”Portugal’s finances are in dire straits and the country is facing an international bailout. Its Socialist minority government tendered its resignation last week after all opposition parties rejected its latest austerity measures. (More on p. 11)
