Deutsche Bank: The damage is done for Scorpio

Positive for investor sentiment that that Scorpio Group management does away with a controversial scheme for paying fees to itself, notes Fearnley. But to Deutsche Bank's shipping analyst, the case is a textbook example of how dire these things can develop.

Even though the management team at Scorpio Group – which is behind two of the most prominent carriers in recent years, Scorpio Bulkers and Scorpio Tankers – on Thursday announced that it will stop paying fees to itself in relation to the sale and purchase of vessels, the decision only marks a small step in the right direction, notes Deutsche Bank's New York-based shipping analyst Amit Mehrotra.

Earlier this year, Amit Mehrotra publicly voiced analysts and investors' criticism of the conspicuous million dollar fees, which he described as fee machine that was hurting the two companies and their shareholders.

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