Deutsche Bank CFO: Hedge Funds Attracting Bankers, Will Do Best Post-Crisis

Apr 26 2013 | 10:18am ET

Hedge funds are poised to be the big beneficiaries of the fallout from the financial crisis and the economic recovery—at the expense of banks—a top Deutsche Bank executive said.

CFO Stefan Krause told a Berlin conference yesterday that hedge funds are both luring banks' best talent with promises of better pay and will probably do best, performance-wise, during the recovery. Krause blamed new regulations for the brain-drain to hedge funds, including stricter capital requirements and other rules forcing banks to quit some business, and new bonus limits that apply to banks.

Krause said most bankers who leave his firm go to hedge funds.

"Our business is people-contingent and you'll never be able to pay competitively," he said. "What you can do is structure your pay differently so it's longer-term oriented."

Those bankers who do defect to hedge funds are likely to enjoy the fruits of their new labors, Krause added.

"There are businesses, based on our capital regulation, we'll not be able to do," he said. "Hedge funds will be able to. If I had to bet who is going to benefit the most post-crisis from the asset appreciation you have coming, then certainly hedge funds."


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.