Singapore tycoon sues Citi over $684 mln losses-paper

SINGAPORE, May 19 (Reuters) - Singapore-based businessman Oei Hong Leong has sued Citigroup's private bank for negligence and misrepresentation after he lost S$1 billion ($684 million) on foreign exchange and bond trades last year, the Straits Times reported on Tuesday.

Oei's lawsuit said Citi, with which he has a 30-year relationship, repeatedly gave him an inaccurate picture of his trading exposure, which led him to take on more positions than he would have taken otherwise, the newspaper said, citing court documents. It said Oei declined to comment about the court case.

A spokesman from Citi told Reuters in an email: "We believe that the claim is without merit and we fully intend to defend our position vigorously." It declined to comment further on the matter.

There was no immediate comment available from Oei's office.

Oei was ranked Singapore's 29th richest person by Forbes last year with a net worth of $210 million. Forbes calculated Oei's wealth based on his stakes in publicly traded companies and in private company filings.

According to Straits Times, Oei claimed he felt compelled to close his positions at an extremely volatile time in October last year, taking huge losses, as he felt he had no choice after discovering the full extent of his exposure. Some angry Asian private banking clients have filed lawsuits after losing money on complex financial products battered in a global market meltdown last year, forcing the industry into damage control.

.....My thoughts :
1) Again my advice, Banks are never your friend ! Don't get mesmerized by being a so call priority or private client of a bank. It just throws a veil over you...make you important and happy.... so that they can sell you financial products.

I remembered being tried to sell a product, which gives you 7% interest annually, but is tied to the worst performnace of 3 global indices (S&P, Nikkei & Euro market) in October 2007. Once any market drop 30%, I will have to absorb the loss ! Investors sold on the 7% interest will have a nasty shock. My RM was telling me ...oh stock market correct 10-20% the most, so you have a high chance of getting 7% annually, just put a token sum inside. What rubbish. The signs of the housing market in the US and financial orgy were already cracking.

Be investment and financial savvy and treat the bank as a partner. Only you youself is accountable to your own well (wealth) being.

2) OHL case is just an example that you may be accumulating wealth for many years, but just need a single wrong step to set you back sevealy. It is very easy to go down, earning back is 10x harder.
Lesson learnt is that one must always be guarded, treat every single cent/ investment extra cautious.