Singapore Private Banks Under Scrutiny for Selling Risky Debts
Singapore’s private banks are coming under scrutiny for earning bonuses by selling risky debt, as the city sees a wave of defaults. Bond issuers offer banks rebates of as much as 1 percent as incentive to sell unrated securities, according to a Bloomberg News analysis of figures from bond-sale arrangers and compiled by analysts.
At least half the S$875 million ($650 million) of bonds that have failed since November were sold by private banks earning rebates.
News Source: Bloomberg