Wednesday, September 10, 2008

Breaking news... Listed company Chairman (919.HK) sues her Private banker Goldman Sachs (GS)

Well, there will be a press conference tommorrow.

Anyhow, a little heads up to the good folks who read this blog.

Explosive stuff...

The Chairman of Modern Beauty (919.HK) is suing Goldman Sachs.

Basically, Chairman Tsang 曾裕 lost a lot of money after making trades with an "Executive Director, Private Wealth Management" at Goldman.

A person by the name of Ronnie Wong Wang, 王弘.

Anyhow, how the losses were incurred remains the focus of this particular lawsuit.

And yes. A lot of accumulators involved.

Especially in view of the fact that this Chairman has received little or no education in English (which of course was not the lingua franca between her and the banker)

A lot of he says she says.

So far so typical. Nothing particularly explosive.

The explosive stuff is the alleged conversation between the 2 parties. The Chairman alleges that the banker said "She would make up the difference by selling her properties (notice the plural) to make up the loss of HK$18 mil."

There are also the issue of account statements which the Chairman said was presented in a way that was not accurate.

For me, of interest is when you open an account, it is required to fill in a survey of what you aim to do with the account and what your history of trading is. Here is a screen cap for the Chairman's account opening form.



I love it how on the form she signed to confirm her 3-5 years experience in writing uncovered options.

Did she fill this form in herself?

Interesting... What do you all think?

Finally, if losses were HK$18 mil, how many facials do you have to do to make up for the loss.



曾裕... Chairwoman, philanthropist, (former?) Goldman Sachs customer...

4 comments:

  1. interesting! while there are obviously legions of rich people that have lost huge money via their private bankers, seldom have this kind of quarrel jump into the public's view.

    please don't settle, ms. tsang. i'd loooove to read the juicy details. i hope you have kept detailed record (e.g. tapes) of your conversation with the p-banker.

    btw, technically, modern beauty chief source of profit is from expired "facial coupons" - the more people who have prepaid but let their "coupons" expire, the more money ms. tsang rakes in. they are actually very happy to NOT actually do that many facials...

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  2. hahahahha

    And she is so modest to say she ONLY has 3-5 years experience in writing uncovered option...

    Facial options expiring worthless. Classic.

    Shuen
    PS can't believe you actually hacked through 919's annual report. You are a true nerd hor hor hor good job

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  3. Very interesting.
    My mother had a part in this ~~~ by way of holding expired beauty coupons.

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  4. i didn't la... 919's business model is something that i've realized even before its IPO (and confirmed during the IPO process), as i'm also a victim of its aggressive sales tactics and am a sad owner of many expired coupons... >_<

    919 would be a very interesting company to analyze, since its so woman-centric - ie by analyzing its financials one would get a glimpse into the changing behavior of women.

    well, to avoid becoming a truly unattractive nerd i better stop here. :)

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