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Jiang Tells CNBC That ICBC Won’t Compensate Trust Investors
http://www.bloomberg.com/news/2014-01-24...ports.html
UPDATE 1-China's ICBC says will help repay investors in troubled shadow-banking scheme
Conflicting statements. I think the message is, the investors must be taught a lesson, but "some" compensation will be made due to message of risk not delivered clearly during the marketing of such products in 2009.
Quote:The incident will be a lesson for investors on moral hazard and risks associated with such investments, Jiang told CNBC from the World Economic Forum in Davos, Switzerland. The Beijing-based lender won’t take “rigid responsibility” for the losses and will review all its partnerships in entities with which it does business, Jiang said, according to CNBC.
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Bank customers need to “see clearly” the risks associated with wealth-management products and other such investments, Jiang told CNBC. ICBC was a distributor of Credit Equals Gold No. 1 and didn’t offer “ironclad guarantees,” Jiang said, according to the report.
http://www.bloomberg.com/news/2014-01-24...ports.html
UPDATE 1-China's ICBC says will help repay investors in troubled shadow-banking scheme
Quote:* ICBC says bank will take some responsibility - paper
* ICBC will inform investors of decision by Jan. 28
* ICBC official says concerned about reputation
* Bailout will reinforce implicit guarantee assumption
Conflicting statements. I think the message is, the investors must be taught a lesson, but "some" compensation will be made due to message of risk not delivered clearly during the marketing of such products in 2009.