Retail investors who had put money in investments known as structured products are now crying foul. Many claimed they had been given the wrong impression by the banks that such products were safe and low-risk.

Such products that made recent headlines include United States investment bank Lehman Brothers' Minibond Series and DBS Bank's High Notes, which also have exposure to Lehman.

Investor Eileen Ko, 52, is now looking at the dire prospect of losing her hard-earned life savings of $100,000.