Why We Believe You Should Not Buy Deutsche Bank Structured Notes

Jul 6, 2018 / Author Chris Vernon
protecting investors

Last year, Vernon Litigation Group posted an article entitled “Why I Would Not Want Deutsche Bank Structured Notes in my Portfolio.”  In that article, we pointed out that these Notes are actually unsecured loans to Deutsche Bank and the loan cannot be repaid if Deutsche bank is unwilling or unable to repay the money owed at maturity of the notes. We highlighted concerns over the financial and moral integrity of Deutsche Bank in that 2017 article.

These Structured Notes Are Really Unsecured Loans

In the 2017 article, Vernon Litigation Group disputed Deutsche Bank’s description of these products as “very flexible instruments to pursue an individual risk management”. Rather we describe Deutsche Bank’s structured notes as unsecured loans to a struggling foreign bank. At the risk of being redundant, if you bought a structured note backed by Deutsche Bank in the last several years, it essentially means that you are loaning your money to a wildly unprofitable and arguably dishonest foreign bank with no collateral protection if this German Bank is unwilling or unable to pay you back.

We want to continue our warning based on what has occurred since our 2017 article. Last week, a Yahoo Finance article posted by Tom Sims  noted the failure of Deutsche Bank’s U.S. stress tests as well as the record low stock price it hit last week. According to the article, the U.S. Federal Reserve last year classified Deutsche Bank’s U.S. unit as troubled and its stock price is down over 40% for the year. In other words, Vernon Litigation Group believes this warning is worth raising again.

ABOUT VERNON LITIGATION

Vernon Litigation Group is a law firm that represents clients in courtroom litigation, arbitration, including FINRA arbitration, and mediation throughout the United States. Our lawyers have collectively represented thousands of investors in securities arbitration and litigation claims nationwide and recovered many millions of dollars from purported financial professionals and financial institutions, both large and small. Please contact us to discuss your rights if you believe a Wall Street firm or other investment firm has failed to act in your best interests or otherwise abused your trust. For more information, visit our website at http://www.vernonlitigation.com/ or contact Vernon Litigation Group by phone at 1-877-649-5394 or by e-mail at info@vernonlitigation.com.

Mr. Vernon handles the litigation and arbitration of complex business and financial disputes, with an emphasis on securities fraud and securities arbitration, throughout the United States.