Deutsche Bank is under pressure on Wednesday morning, following the revelation that the New York Federal Reserve criticised the German banking giant’s US financial reporting as “low quality, inaccurate and unreliable” in a sharply worded letter, FastFT reports.
Parts of the private correspondence sent to the bank by Daniel Muccia, a senior vice-president at the New York Fed, in December was first published by the Wall Street Journal on Tuesday night.
Deutsche Bank shares were down about 1.8 per cent at €26.18 at pixel time, after earlier falling as much as 2.8 per cent.
“The size and breadth of errors strongly suggest that the firm’s entire US regulatory reporting structure requires wide-ranging remedial action,” Mr Muccia says in the letter, also seen by the FT.
The tone partly reflects the Fed’s frustration at Deutsche’s perceived failure to act on similar problems raised by regulators since 2002, people familiar with the Fed said.
The regulator said there had been “no progress” on remedying prior supervisory concerns and the bank’s regulatory reporting in the US “continues to be fragmented and suffers from weak or inadequate internal controls”.
