'Wide-ranging remedial action' appears to have been required.
Deutsche Bank dropped in Frankfurt trading Monday after the Wall Street Journal said that bank overseers faulted some of the firm’s U.S. businesses last year for 'inaccurate and unreliable financial reports.
Bloomberg News reports that a Federal Reserve Bank of New York review of the company’s U.S. operations also found they suffer from inadequate oversight and auditing, as well as weak technology, the newspaper said, citing documents it reviewed.
'The size and breadth of errors strongly suggest that the firm’s entire U.S. regulatory reporting structure requires wide-ranging remedial action', Daniel Muccia, a New York Fed senior vice president who supervises Deutsche Bank, wrote in a December 11 letter to the bank, according to the Journal. The letter said the company also hadn’t made progress toward fixing lapses identified previously.
Deutsche Bank told shareholders in January that it’s investing in more robust controls and hiring to meet regulatory challenges.
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