This is an open discussion in relations to the confidence & trust issues that the public face whilst dealing with Investment Bank especially in relations to Capital Market Products.

Case in point
1. The recent $52 billion Pansi Scandal aka Pyramid Scheme
source: http://news.bbc.co.uk/2/hi/business/7798533.stm

2. Credit Crisis
~ Collapse of Lehman Brothers, Morgan Stanley

3. Lorain Osman
~ infamous fraudster who ran away with Malaysia's Billions and cause Bumiputera Commerce to collapse.

I have seen numerous issues in relations to Capital Markets frauds, offences and so on be it potentially or actual or threaten.

Refering to case point (1) I have heard of this scheme being deployed successfully in Malaysia as well, Banks have failed to prosecute the fraudster who initiated such scheme and dissapeared.

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So for investors you might want to do a simple self evaluation of yourself:

1. how well do you know the bank?
2. have u ever checked on the statements/contract notes sent to you, and whether they do tally what u ordered?
3. have u received your statements/contract notes regularly?
4. do u know the governing provisions for Securities/Futures Dealings?
5. can you tell difference between a legitimate fund manager/asset managment service/ remisier/ future broker?

This are some of the questions you ned to ask to protect yourself.

Post it here and let us discuss an evaluate the risk factors.

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Next how much trust and confidence do you have with the bank that your currently with, are they strict with the law or are they flexible allowing the customer to dictate them to their tune?

there are possibly 14 Investment Banks in Malaysia.. state..

Your reason, the like and dislike factors of that particular investment bank..

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The good thing is at this times of crisis, the benefits of having a heavily regulated industry meaning if u sneeze fart or ttalk any bank (regarless IB and Commercial Banks) are required to seek approval from their regulatory partner.

Look at Maybank Indonesia deal, even BNM had to step in...

Generally speaking most banks are in safe hands, because over time they r required to maintain at all times a Capital Adequency Ratio (depends terminology varies according to industry). If a bank is tight on cash it would surely meet this requirement, any delay in topping up would be a signal of a bank in trouble.

Securities back by gov = GLC ?

It's not a matter whether an investment bank is shaky or not, normally its the remisier whom is of shaky character. Everything also can, everything also yes can do can do... when the sh- t hits the fan, you won't find him anytime soon.