By: PanzerGrenadier DBS has decided to compensate investors in their press release on 22 Oct 2008. In it, DBS admitted that, …we have found that a number of cases did not meet the standards DBS upholds and the Bank will be compensating these customers with effect from tomorrow. Evidently, the bank has confirmed that there were some mis-selling although the language used is far more ambiguous. The fact that DBS would be compensating the customers says a lot. Of course, the debacle is far from over as it is still not clear who will be compensated and how much although it would be to the tune of $70-80 million out of $360 million sold to investors in Singapore and Hong Kong. That means that DBS has decided to compensate investors in their press release on 22 Oct 2008. In it, DBS admitted that, “…we have found that a number of cases did not meet the standards DBS upholds and the Bank will be compensating these customers with effect from tomorrow.” Evidently, the bank has confirmed that there were some mis-selling although the language used is far more ambiguous. The fact that DBS would be compensating the customers says a lot. Of course, the debacle is far from over as it is still not clear who will be compensated and how much although it would be to the tune of $70-80 million out of $360 million sold to investors in Singapore and Hong Kong. That means that likely each investor will get 20%+/- back from their risky Lehman Brothers related investments assuming all investors are compensated. However, until more details are released, the public won’t know the extent and nature of the compensation packages. Living Happily Ever After The Lehman Brothers debacle has tarnished DBS’s reputation. Will they be able to walk away from this debacle in a fairy-tale manner and live happily ever after? More importantly, given that two-thirds of the product were sold to Treasures (i.e. Private Banking/High net worth) customers. Would these people be able to trust DBS again? Read more...