HONG KONG: The Hong Kong Monetary Authority is offering to mediate between investors and financial institutions to help them reach a voluntary settlement.

The comment came as more than a hundred angry investors protested outside eight banks in Hong Kong, claiming the lenders had misled them into buying investment products linked to the failed US bank Lehman Brothers.

Many of the investors are elderly retirees who claim they have lost their life savings in the investments and are demanding that they get their money back.

They are among the thousands of investors who said the banks never told them about the risks involved in purchasing Lehman Minibonds, and things got ugly as frustrations boiled over.

Some investors tried to force their way into a DBS bank branch and ended up scuffling with security guards who formed a human barricade to keep them out.

Meanwhile, the Hong Kong Monetary Authority is trying to step in to calm tempers. It is offering mediation services to help individual investors and banks reach voluntary settlements.

According to the de facto central bank, if the mediation fails to resolve the disputes, both sides can then agree to use an arbitrator with powers to decide on the case.

Separately, the Hong Kong consumer watchdog said it may sue banks which allegedly mis-sold the Lehman Minibonds as risk-free investments.

The Consumer Council has been focusing its efforts on helping vulnerable elderly people who had bought the products. It has received almost 3,700 complaints so far.

- CNA/so