At Deutsche Bank issues: the vaunted German pedantry was not so and iron
The list of accusations made yesterday US regulators against Deutsche Bank, looks depressing. The Fed released the letter stated that some reports of US branches DB were "inaccurate and unreliable".
US department make up over a quarter of total assets Deutsche Bank. Meanwhile, the Fed's examination showed that the giant DB momentum in the United States were supported by financial statements, drawn up with serious problems. On the problems of these lenders I have known for many years, but does not solve them.
In the letter,
directed the Fed in December manual
The DB, said that
Statements provided by some
US bank branches, "has
low quality, inaccurate and unreliable.
The size and extent of errors convincingly
prove that the whole of the US
DB infrastructure requires
comprehensive action to restore
order. "
criticism
the Fed - a reproach to one of
the largest banks in the world, and this is
at a time when the federal regulator
always says that more and more
focuses on the fact that foreign
creditors as best you can feel
in the US market of big capital.
The letter says,
that DB has not reached any
progress in addressing previously identified
problems. The auditors found a "significant
errors and the poor state of
Data Integrity "in the US
divisions of the German bank. Range
errors - very wide: from entry errors
Information to failure into account values
collateral when assessing
credit risks.
disadvantages
They represent the "system
disorder "and" subject company
significant operational risk "
It mentioned in the report Daniel Mucci,
senior vice president of the Federal Reserve Bank of New York,
responsible for verifying Deutsche
Bank.
The American
government has a variety of tools,
to restore order in the banking
system of the country. It can be personal
letters targeted bank executives
(As in the illustrated case), and more
serious cases - restrictions
for operating activities.
In a letter
contains urgent requirement
addressed to the top management of DB
that have been taken to
Steps to address the problems. On Tuesday
DB representative said
in a public statement: "We have worked
diligently to develop our
system and controls. Our
goal - to become the best in our industry. "
Mr. Mucci further comment
He refused. The American branch
German lender produce
investment banking,
engaged in asset management and
transaction processing. All this
combined is $ 600
billion in assets - more than a quarter of the total
Bank of turn. Substantial part
US operations were run by
Anshu Jain (now co-director
Deutsche Bank). acting
CEO of the North American
a bank branch - Zhak Brand. comment
these two gentlemen have not yet been reported.
Problem
arises as to CFO
DB - Stefan
Krause, which is ultimately responsible
of the bank's financial performance and is
direct responsibility for the quality of
statements.
Problems
strike at the very foundation of the bank, and from
This has affected many of the major
lenders around the world: the fact that
some investors and depositors
feel uncertain about the safety of
its assets and take them off.
Such fears, for example, have been particularly
widespread in Europe during the
banking crisis.
Meanwhile,
the letter states clearly that concern
control over bodies
American offices DB
growing is not the first
year.
"Beginning with
2002, in the regulatory structure
US Bank branch out
to the fore the weaknesses, and for
decades, they have remained
weak ", - says Mr. Mucci. -
"Most of them - set
fact, and the root causes of these errors were not
eliminated. " Paul Miller, a former federal
bank examiner, said he saw something
unusual in the fact that the bank has repeatedly
He warns but does not solve the problem.
"Usually, when the regulator on something
It indicates bank immediately corrects it. "
Independent
Auditor DB, KPMG LLP, too
found shortcomings in the delivery of financial
Bank statements for 2013. Representative
Agency comment on the situation
He refused.
Among
problem areas - for example, that in the
bank incorrectly determined
riskiness 20% of its credits. Commission
counted at least half a dozen areas,
which require immediate
action to remedy the situation.
"Rambling" regulatory system,
"Weaknesses" in the technologies used
branches DB. Instead
In order to automatically collect
data and transmit them to the federal
regulator, DB officials
We make manual changes
more than 800 reporting units. Data
These were related to the balance point,
types of loans and deposits total
valued at approximately $ 337
billion.
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