Png Eng Huat writes to the Straits Times Forum, 10 July 2009:
MAS should have been more objective
I REFER to Wednesday’s report, ‘MAS acts against 10 institutions’.
It seems the Monetary Authority of Singapore (MAS) has learnt little from the Lehman crisis. The crux of the sale of those toxic structured products was that their profits were oversold or misrepresented while their underlying risks were undersold.
In short, too much positive spin was put on the marketing of such products. In its latest report on the structured notes linked to Lehman Brothers, MAS has fallen into this ‘positive spin’ mode by highlighting the impressive statistics on settlement cases, while not addressing the pressing issue that most affected investors did not get any closure at all.