November 20, 2009

TEUTONIC TONTINE:

Deutsche Bank Life Insurance Fund in Hot Water (Anne Seith, 11/20/09, Der Spiegel)


Gerhard Strate, a well-respected lawyer based in Hamburg, has seen a lot of things over the years. But he still has a hard time believing the story of the Deutsche Bank funds db Kompass Life 1 and 2, calling it "unbelievable" and "absurd." The closed-end funds buy life insurance policies from Americans and assume responsibility for paying their future premiums. When the original policy-holder dies, the entire payout goes to the fund. It is like short-selling US life expectancy.

Deutsche Bank collected some €500,000 ($750,000) from customers for its macabre money-making scheme. But the fund quickly turned into a mega-flop. So far, not one investor has received even a single dividend payment and some may lose their entire principal.


You have to know better than to listen to Democrats describe the American health care system.

Posted by Orrin Judd at November 20, 2009 7:16 AM
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