shares in this article
Deutsche Bank’s board of directors said it was willing to accept financial losses because the bank was having trouble overseeing the widespread use of private communication channels among employees, Bloomberg news agency wrote Thursday, citing people who have familiar with the matter. A company spokesperson declined to comment.
Money House is one of several financial companies investigated by US authorities for using private communication channels that cannot be archived. The bank recently introduced a new app that allows you to retrieve messages from company mobile phones.
Deutsche Bank and other monetary houses with USA stress test without problems
According to Federal Reserve (Fed) estimates, major financial institutions in the US have crisis-proof capital resources. All 34 major banks passed the financial regulators’ annual stress test, the Fed announced in Washington on Thursday. Deutsche Bank also had no problems with its US subsidiary during the stress test using simulated crisis scenarios. Central bank supervisors want to use the strength test to ensure that lending to businesses and households does not suffer abrupt disruption in the event of a financial market crash.
The US Federal Reserve’s stress tests are a consequence of the 2008 financial crisis. They are meant to ensure that banks are prepared for emergencies and do not have to be bailed out again with taxpayers’ money. The Fed examines whether capital buffers are sufficient to withstand extreme stresses such as a rapid rise in unemployment or a rapid collapse in property prices. For many of the large banks, the annual audit is critical in order to be able to distribute money to investors in the form of dividends or share buybacks. From Monday they can publish their capital plans.
Due to the Crown crisis, the Fed has monitored the balance sheets of financial institutions particularly meticulously in recent years and, at times, has imposed strict conditions on the conservation of cash reserves. Share buybacks and dividend increases were either temporarily taboo or placed under strict conditions. Meanwhile, Deutsche Bank had a tough time with supervisors with its US operations and failed the stress test multiple times from 2015 to 2018. Unlike its US rivals, branch dividends and share repurchases of foreign corporations do not depend on the test result, but the distributions of profits to their parent companies.
Deutsche Bank shares temporarily fell 1.57% to EUR 8.38 via XETRA in the morning.
FRANKFURT / WASHINGTON (dpa-AFX)
The leverage must be between 2 and 20
More news about Deutsche Bank AG
Image sources: DK Grove / Shutterstock.com, Nessluop / Shutterstock.com