This report is for the purpose of exposing why the Hong Kong Monetary Authority (the ‘HKMA’) and the Securities and
Futures Commission (the ‘SFC’) should bear the primary responsibilities for the scam. This is not to say that Lehman Brothers Asia (the ‘Lehman’) and the HSBC Bank, respectively the controller and accomplice of the scam, are any less culpable than the regulators. Rather the total and inexplicable failure of the regulators to do anything during the six years when the
scam was allowed to rampage through our banking system and to deceive the ordinary members of this community raises serious questions about the competence and integrity of these statutory bodies whose raison d'être is to protect the public interests. Protecting the public interests is exactly what the HKMA and SFC failed, and continue refuse, to do. The
following pages set out the grounds why these bodies deserve condemnation.
Since the scam was exposed in September of 2008 in the wake of the collapse of Lehman Brothers, the HKSAR Government and the two regulators have been maintaining that the questionable Lehman-related securities are all about ‘mis-selling’. They want the public and the media to focus solely on the distributor banks, which in turn means, the frontline staff
who would be the ideal scapegoats for the wrongs committed by those who have authority over them in their organizational hierarchy.
Having looked into the scam very closely including literature research and consulting knowledgeable professionals in the industry, we come to the conclusion that the scam could only be implemented as it did with the courtesy of the regulators who dutifully turned a blind eye to it at the behest of the banks. Their subservience is amply exemplified by their persistent refusal, without any reason whatsoever, even to consider that the disclosure about the products in the prospectuses may be problematic.
....to be continued.
Extract From: 'Exposure - the truth about Lehman-HSBC Fraud'
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