Beware Of Litigious State-Owned Banks

February 29, 2008

Large financial institutions tend to be reluctant to get involved in lawsuits, even when it would benefit their clients or shareholders. German state-owned banks are a notable exception to the rule.

Michael L GordonJohn AngeloFormer shareholders of National Home Health Care Corp, which was acquired by Angelo Gordon last year, Read the rest of this entry »

Deutsche Bank Ackermann’s Settlement In Mannesmann Trial Raises Governance Concerns

December 26, 2006

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Poor Timing For Deutsche Bank’s Purchase of MortgageIT

November 13, 2006

Deutsche Bank LogoDeutsche Bank AG’s (DB) purchase of mortgage originator MortgageIT Holdings (MHL) could be another disaster waiting to happen if Deutsche’s prior record for acquisitions in the US is any guidance.

MortgageITMortgageIT went public only two years ago as a mortgage REIT, and in light of industry consolidation, decided there was not much hope to remain independent for much longer. Unlike most other buyouts, this transaction is surprisingly clean without significant conflicts of interest or excessive payoffs to management. Of course, there are the usual vesting acceleration and golden parachutes, but the amounts involved are modest by the standards that we have become accustomed to in today’s buyouts.

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