Reports: Fed warns Deutsche Bank on compliance failings
Deutsche Bank bosses in the US are reportedly steeling themselves for sanctions as their compliance processes come under scrutiny from the Fed.
According to reports in Bloomberg this morning, the Federal Reserve has written to Deutsche Bank telling them that risk management processes have not sufficiently improved.
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That is despite a host of private accords between the Fed and the bank to do just that.
Both Deutsche and the Fed refused to comment to Bloomberg.
Previous missteps by the bank have seen settlements as high as $137m (£103m) for alleged currency benchmark jiggery-pokery and $41m (£29m) for money-laundering weaknesses.
Last year the Fed sharply rebuked Deutsche Bank too, saying it would remain at its second-worst grade on its rating scale.
This year’s letter will have come as a blow to CEO Christian Sewing who has otherwise overseen the beginning of a successful turnaround.
Deutsche’s share price growth has outpaced most rivals over the past twelve months.
And the US operation, despite the Fed’s rebuke, was this week celebrating a move into new headquarters in New York’s Columbus Circle.
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