The Federal Reserve Bank of New York has found serious problems in Deutsche Bank`s U.S. operations, including shoddy financial reporting, weak technology and inadequate auditing and oversight, a person close to the matter told Reuters. In a letter to the German lender`s executives last December, a senior official with the New York Fed described financial reports produced by some of the bank`s U.S. divisions as `low quality, inaccurate and unreliable`, said the source, who is familiar with the letter. The New York Fed, as the U.S. central bank`s eyes and ears on Wall Street, directly supervises the biggest U.S. and foreign banks, partly through embedded regulators who go to work each day inside the banks. Deutsche Bank shares lost 1.8 percent in early trading, the biggest decliners on both Germany`s blue-chip index and among the European banking sector, on fears that U.S. regulators could take action against the bank.
Wednesday, July 23, 2014 10:41