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Black Tuesday's aftermath

Language: English Series: The Economist ; 378(8461) 21 January 2006, 75(1)Publication details: 2006Subject(s): Summary: Warns of the need to reform the German open-ended property market by highlighting several problems that it has encountered in recent years. The first of these involved parent banks bailing out funds that were set to lose investors money. This was closely followed by "Black Tuesday," where DB Real Estate, a subsidiary of Deutsche Bank, closed the property fund, grundbesitz-invest, for revaluation for two months. The article offers suggestions to solve the apparent crisis, such as better and more independent monitoring, having non-bankers on funds' supervisory boards, and to limit a funds tradability - for a few days a month, or with penalties for big withdrawals - to make them less vulnerable to runs.
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Item type Current library Call number Copy number Status Barcode
Journal article London Journal article L132256 (Browse shelf(Opens below)) 1 Available 132256-1001

Warns of the need to reform the German open-ended property market by highlighting several problems that it has encountered in recent years. The first of these involved parent banks bailing out funds that were set to lose investors money. This was closely followed by "Black Tuesday," where DB Real Estate, a subsidiary of Deutsche Bank, closed the property fund, grundbesitz-invest, for revaluation for two months. The article offers suggestions to solve the apparent crisis, such as better and more independent monitoring, having non-bankers on funds' supervisory boards, and to limit a funds tradability - for a few days a month, or with penalties for big withdrawals - to make them less vulnerable to runs.