Less than due diligence
From German English language daily The Local:
"A German Catholic bank [Pax Bank] has apologised to investors and promised to sell its shares in a contraception producer, a weapons firm and tobacco companies....The Pax Bank website...advertises that it invests in ethically-sound shares, specifically excluding areas such as arms or tobacco, and promising that its dealings will fit with the beliefs of the Catholic Church, which bans artificial contraception".
Shades of the urban legend (?) about the Catholic Church in these parts having share in what used to be called the London Rubber Company. If that is true, it was forgivable, as the name did not exactly shout from the rooftops what it makes. So, what of this bank's investments?
"A report in this weekend’s edition of Der Spiegel magazine said that the bank invested €158,867 in shares of US pharma firm Wyeth, which produces contraceptives".
Forgivable on the same basis, although one could argue that its brokers were less than diligent.
"A further €577,970 was invested in BAE Systems, a British companies which produces among other things, nuclear submarines and fighter jets".
Hmm, getting a bit more debateable there..
And the ne plus ultra:
"Shares in British American Tobacco and Imperial Tobacco worth €870,950 also belonged to the bank’s portfolio the magazine reported".
The German for tobacco is 'tabak', so it would appear that PB's bankers had not bothered reading its investment policy at all.
"A German Catholic bank [Pax Bank] has apologised to investors and promised to sell its shares in a contraception producer, a weapons firm and tobacco companies....The Pax Bank website...advertises that it invests in ethically-sound shares, specifically excluding areas such as arms or tobacco, and promising that its dealings will fit with the beliefs of the Catholic Church, which bans artificial contraception".
Shades of the urban legend (?) about the Catholic Church in these parts having share in what used to be called the London Rubber Company. If that is true, it was forgivable, as the name did not exactly shout from the rooftops what it makes. So, what of this bank's investments?
"A report in this weekend’s edition of Der Spiegel magazine said that the bank invested €158,867 in shares of US pharma firm Wyeth, which produces contraceptives".
Forgivable on the same basis, although one could argue that its brokers were less than diligent.
"A further €577,970 was invested in BAE Systems, a British companies which produces among other things, nuclear submarines and fighter jets".
Hmm, getting a bit more debateable there..
And the ne plus ultra:
"Shares in British American Tobacco and Imperial Tobacco worth €870,950 also belonged to the bank’s portfolio the magazine reported".
The German for tobacco is 'tabak', so it would appear that PB's bankers had not bothered reading its investment policy at all.
Labels: business, Men and women of the cloth, Smoke gets in your eyes
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on Monday, August 03, 2009 at 8:29 am.
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I have a tiny number of shares in Imperial Tobacco and they pay a very healthy dividend.
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