Posts tagged "AWM"
Deutsche Bank and a High-Net-Worth Client Who Made His Money From Payday Lending

Deutsche Bank and a High-Net-Worth Client Who Made His Money From Payday Lending

In her September 7, 2013 column, Gretchen Morgenson identifies a past relationship between Cash Call, Inc., an online payday lender, and Deutsche Bank, in which the bank led the senior credit facility for Cash Call.  When asked by Morgenson why the banks would want to provide backing for companies making high-cost and possibly predatory loans, a spokesperson for Deutsche Bank told her only that the relationship with CashCall ended in 2007.  (Read our post on DB’s current funding of payday lender DFC Global here.) We have found that there is more to the Deutsche Bank-Cash Call relationship. It turns out that the founder of Cash Call is a high-net-worth individual who had utilized a failed tax evasion vehicle that Deutsche Bank and KPMG had provided to their clients. Cash Call was founded by J. Paul Reddam, who had founded DiTech, a pioneering subprime mortgage lender, in 1995.  When Reddam sold DiTech... {read more}
Can Deutsche Bank make Asset & Wealth Management Work?

Can Deutsche Bank make Asset & Wealth Management Work?

Deutsche Bank has said it will need to increase its Ultra High Net Worth clients by 50% by 2015 in order to meet the goal of doubling the unit’s 2011 profit level.[1]  However, this will be no small challenge for the bank.  Less than a year ago, Co-CEO Anshu Jain spoke plainly to Bloomberg:  “If you particularly look at the ultra-high net worth coverage model, the Swiss firms and Goldman Sachs, to name three of our competitors, do a far better job.”  Deutsche Bank ranks 8th in the world by AUM of global private banks, according to Scorpio Partnership Private Banking Benchmark 2013. {read more}
Exposure Risk for Private Wealth Clients: Records of Hundreds of Deutsche Bank Offshore Entities Leaked

Exposure Risk for Private Wealth Clients: Records of Hundreds of Deutsche Bank Offshore Entities Leaked

SHOULD PRIVATE WEALTH CLIENTS GIVE DEUTSCHE BANK MORE MULLIGANS IN 2013? If you are considering trusting Deutsche Bank and its newly reorganized Asset & Wealth Management division to manage your investments, you should consider the following facts about the bank. In April 2013 a whistleblower exposé of over 2.5 million secret offshore tax haven files identified Deutsche Bank as one of the banks with extensive offshore entities now at risk for scrutiny from tax investigators.  The files have been organized into a public searchable database by the International Consortium of Investigative Journalists (ICIJ).  {read more}
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}