Feb 9, 2007
Woman sues Citibank over $844,000 forex investment losses
Indonesian housewife claims she was given negligent investment advice
By K. C. Vijayan
STUNG by about US$551,000 (S$844,000) in losses, an Indonesian housewife is taking Citibank to court, blaming negligent investment advice from the United States banking giant.
But Citibank counters that Madam Catherine Wenas was already experienced in foreign currency investments by the time she opened the foreign currency trading accounts at the centre of the dispute in August 1999.
According to documents filed in court, she claims to have told the bank’s representative at a meeting in Jakarta then that the funds were meant for her daily use, to support the education of her two children and to build the deposit.
It’s all about risk! Such a shame, just imagine if she had invested in slightly safer instruments like Cash Saver savings plan this would be her projected returns.
Single investment of $844,000 the projected returns would be $ 973,681 over 5 years, Projected Investment Rate of Return upon maturity is 2.90% p.a. (after deductions). This gives about $25K yearly returns, definitely not a lavish lifestyle, but good enough to feed herself and her two children.
Also placing so much cash on a single instrument is not wise. Diversification, prudent planning and good risk management is the way to protect and manage your assets.
Learning from mistakes is a costly affair and definitely not the way to go! Contact your reliable needs planner today!
great lessons
you may also visit
http://forexwithus.blogspot.com/
This blog is awesome
you will find alot of information about the forex buisness and how to enter the Fx world
It also contains alot of secrets and valuable lessons
Feel free to comment there
http://forexwithus.blogspot.com/
By: karmat on May 27, 2007
at 8:34 pm
If the agent followed the guidelines and rules he or she may not be at fault. In the U.S. an agent has to follow fairly stringent sales rules and there is alot of oversight by home office.
By: phoenix arizona home life auto insurance on July 3, 2007
at 12:57 pm
Unfortunately, the consumer is always on the loosing end. Not knowing or properly understanding the investment risk is a big disadvantage.
Often the fine prints protects the banks rather than the consumer. The consumer protection here has a long way to go compared to the USA.
In Singapore, there are tight regulations but boutique investments or manage accounts might just fall through the gaps.
By: Get Protected on July 3, 2007
at 4:13 pm
http://fxpalace.com/ Want to learn howto trade currencies? We have some of the best tutorials, very easy to understand for beginners.
By: dianafx on March 12, 2008
at 12:28 pm
WE ARE LOOKING FOR A FOREX INSURANCE PLEASE IF YOU CAN HELP ME LET ME KNOW THANKS
By: LEOCADIO PAJARES on March 14, 2011
at 12:03 am
It is very common, many investors have no ideas what there are investing. When the investment instruments make money, they keep quiet. When they loose money, they make noise and sue the parties that offer the investment.
By: Angel Stone on March 31, 2011
at 10:36 pm