HongKong legislators blast regulators on bond fiasco

               Regulators may have failed in their duty to regulate banks in HongKong that sold bonds backed by some of the now failed/failing and struggling financial  institutions based in the USA.
     The regulators are asking if the salespersons of the banks had properly explained the underlying risk to the buyers of the bonds (a large part of whom may be retirees).There have been some protests in Hong Kong on this issue. Calling some of the complex financial instruments like "collateralized debt obligations" as bonds seems to be giving the false impression of safety.
     However the government does not seem to be inclined to reimburse investors in these so called bonds at present as it does not seem to be fair to taxpayers.
    The government also seems to be confident that the banking system is quite stable at present and that there is no need to use money from the exchange fund to support it at present. But the economy seems to have a good chance of going into a recession.

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tags: iceland, meltdown, financial,
liquidity, greed , stock market, banking

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