Not content in losing big with Las Vegas casinos, Deutsche Bank now wants to gamble on how soon we Americans will die. The bank has been in the death business since 2009, when its first two Kompass Life funds purchased life insurance policies of older Americans. Then, at least, one could argue they were performing a service by providing liquidity to people who needed the cash, although the funds profited when the policy-holders died according to the actuary tables. But now, with Kompass Life III, Deutsche Bank has come up with something truly innovative: certificates based on medical data which allow the investor to guess when the "Reference Individual" (old Americans between the ages of 70 and 90) will die:
Der Unterschied zu den herkömmlichen Produkten des Zweitmarkts besteht darin, dass die Deutsche Bank in diesem Fall keine Lebensversicherungspolicen aufkaufte, sondern Zertifikate entwickelte, in die der Fonds „db Kompass Life 3“ die Mittel der Anleger investierte. Die Zertifikate basierten laut Informationsbroschüre der Bank auf einem Portfolio aus 500 Personen in den Vereinigten Staaten, die zwischen 70 und 90 Jahre alt sind. Deren Gesundheitsdaten seien vor der Aufnahme in das Referenzportfolio durch zwei externe medizinische Gutachten beurteilt worden.
(The difference to the other products in the secondary market is that in this case Deutsche Bank doesn't purchase life insurance policies, but rather creates certificates in which the investors in "db Kompass Life 3" invest. According to the prospectus, the certificates are based on a portfolio of 500 Americans between the ages of 70 and 90. Their health information is analyzed by two external medical experts before being included in the portfolio.)
The quicker the "reference individuals" die, the greater the return to the investor. If, God forbid, they outlive the estimates of the medical experts then Deutsche Bank wins big. Guess who stands to make the big money here?
The ombudsman for the Association of German Banks has condemned "db Kompass Life 3":
"Das Produkt ist mit der Unantastbarkeit der menschlichen Würde nicht zu vereinbaren."
"The product violates (Ariticle one of German Basic Law): Human dignity shall be inviolable."
What does human dignity have to do with profits?
Dignity and an empty sack is worth the sack. (A Ferengi Rule of Acquisition)
Posted by: Strahler 70 | February 08, 2012 at 11:28 PM
When I lived in Germany, I was surprised by many things. Mainly that they dont want the USA to change. I had to adjust to this anti-change mentality, then I asked myself why. Simple: they make money off of us! And the anarchists use us as bogeymen, but should an American try to actually change, vote for the green party, promote universal healthcare, then these so called liberals in Europe are often against it. They are too "adult" in Germany, or so they imagine. But you can see these so-called adults behind the scenes are betting on our death-rate in the USA! Europeans are heart will always be the enemies of America. Its natural: Europe and USA are enemies. If they can, stab each other in the back.
Posted by: michijo | February 10, 2012 at 12:46 PM
Maureen Forester Page
Posted by: Nick Vourdousis | March 07, 2012 at 12:57 PM