Will you sue a bank?
By ahgong
@ahgong (10064)
Singapore
November 26, 2008 5:33am CST
With the recent fall of the Lehman brothers, a lot of people who bought into their notes and minibonds are made poorer due to the failure of their products as well.
Here, the local banks are facing a hard time explaining to investors who were misled into buying the bonds as low risk investments rather than the high risk investment that they actually are.
So the investors all banded together and are considering a legal case againt the bank who sold the investments to them.
Then it makes me think back to all the court cases I'd watch on TV. Those made in serials like the Practice, Alley Mcbeal, Boston Legal and other shows protraying the legal system. Especially the ones where the clients goes against big institutions like banks, tobacco companies, waste treatment plants... etc. etc...
It is like goliathe going against the giant. A giant who has enormous funds to hire the best legal muscle to wear one down with paper work.
On TV, goliathe always wins. But in reality, is it the same?
Have you came across any news reports where people sue the banks, win and get compensated accordingly? Cos in the local papers, I have yet to come across anyone undertake the task of suing a large institutions such as a bank.
Do share your views.
1 person likes this
2 responses
@kun2349 (23381)
• Singapore
27 Nov 08
It's just plain crazy to sue the banks for their own loss.. It's just like buying 4d, alot of ple buying a very hot and popular number, but in the end, it din open.. But do we see them sueing singaporepools for their losses?? No right?? lol =D SO when they lose their investments, why should they sue?? Unless they are plain stupid or brainless to believe, investments are risk free?? If so, the world wont be round anymore if everything can be so straight forward.. lol =D
@ahgong (10064)
• Singapore
27 Nov 08
Ah... the contention here now is not that they are not willing to admit that they invested in the wrong product.
But they invested in the wrong product because they were told a different story at sales time about the true nature of the financial product they bought into.
Imagine telling a low risk investor to buy into a high risk product by assuring them that the high risk product is a low risk one.
It is like telling ah por that she is buying a gold fish when in actual fact the fish is a shark!
So, all these legalities are being brought in.
1 person likes this
@kun2349 (23381)
• Singapore
27 Nov 08
well, it's too bad, that they dun wanna do their own research.. ANd if one day, foreign agents were to tell them that, singapore is going bankrupt soon, and that they must sell everything they have, do u think they will do that?? I absolutely think so, because they are too naive in their thinking.. And that applies to those well educated ple, as well as middle class ple..Thus, the banks are right in not refunding them their losses, but to those elderly and the lowly educated.
1 person likes this
@sudiptacallingu (10879)
• India
26 Nov 08
No, I have not heard people win against banks. In many country, many small time and big time private banks have gone bankrupt
and the investors have all lost their hard earned money but I don’t think winning is technically and legally possible. All share market papers come with a red herring prospectus wherein the risk factors are clearly mentioned. That we do not pay heed to them is entirely our problem, not the banks. At the most, the court and the govt can force the banks to pay back some part of the amount lost.
and the investors have all lost their hard earned money but I don’t think winning is technically and legally possible. All share market papers come with a red herring prospectus wherein the risk factors are clearly mentioned. That we do not pay heed to them is entirely our problem, not the banks. At the most, the court and the govt can force the banks to pay back some part of the amount lost. 1 person likes this
@ahgong (10064)
• Singapore
27 Nov 08
That is what I am thinking too.
The institution is already bankrupted. How in the world is the institution going to pay in the event one does win the law suit?
I wonder what these lawyers are thinking about when they take on the case.
Going against a bank is like an egg going against a stone wall.
How often does the egg win?
