Posts tagged "Asset Management"
Prospective Clients: Will Deutsche Bank’s US Operations Remain Stable?

Prospective Clients: Will Deutsche Bank’s US Operations Remain Stable?

In addition to the legal and headline risks, Deutsche Bank has been facing intense criticism from U.S. regulators for capital concerns, culminating in a new rule proposed by the Fed in December 2012 to regulate foreign banks’ U.S. subsidiaries (known as the “Anti-Deutsche Bank Rule” on Wall Street).  One of the reasons for the new rule is to prevent another large-scale financial crisis that would force the Federal Reserve to provide billions of dollars in emergency funding to foreign banks operating in the U.S. Recently the head of the FDIC called the bank, “horribly undercapitalized.”  {read more}
RREEF Faces $1.35b In Terminations By Pension Funds

RREEF Faces $1.35b In Terminations By Pension Funds

Recently, a number of public pension funds have decided to terminate investments with RREEF, citing organizational uncertainty, staff turnover, and unsatisfactory performance. At least eleven pension funds have terminated investments with RREEF since January 2011, including the Wisconsin State Investment Board, MassPRIM, CalPERS, Oregon PERS, and IndianaPRS, according to public documents. This amounts to $1.35 billion in lost assets under management (AUM) for RREEF.  “These conditions are not conducive to clients investing money,” Kevin Faxon of J.P. Morgan Chase told Pensions & Investments in March 2012.  For more details, see our latest report, “RREEF Faces $1.35b In Terminations From Pension Funds Since Start of 2011.”       {read more}
Should RREEF Investors Be Concerned?

Should RREEF Investors Be Concerned?

How much key-person risk can investors tolerate with respect to RREEF? The real estate investment firm has undergone significant changes in its management ranks in the last several years. Recent management turnover at RREEF has totaled over 624 years of industry experience. While it is no longer publicly for sale, investors should carefully consider the key-person risk at RREEF as the firm’s future remains up the in air pending the results of Deutsche Bank’s strategic review of the Asset Management Division, which are expected this month.   {read more}
As RREEF Negotiations Fail, Uncertainty and Capital Concerns Persist

As RREEF Negotiations Fail, Uncertainty and Capital Concerns Persist

Last week Deutsche announced that it had ended negotiations with Guggenheim Partners on the potential sale of RREEF, the bank’s alternative asset management business.  According to Deutsche, “the parties were unable to agree on the terms of the sale of the business and mutually agreed to end exclusive negotiations.”  RREEF currently has about $59.7 billion in assets under management. {read more}