UPDATE: Deutsche Bank's (DB) U.S. Ops Suffer from Various Reporting Issues - WSJ
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Deutsche Bank AG (NYSE: DB) is lower on headlines that the Federal Reserve Bank of New York sees the bank's U.S. operations suffering from a 'litany of serious problems, including shoddy financial reporting, inadequate auditing and oversight and weak technology systems,
according to the WSJ,citing a letter sent to the bank last December.
UPDATE - According to the report, the NY Fed that some of the financial reports placed by the U.S. units of Deutsche Bank are of low quality, inaccurate and unreliable. The size and breadth of errors strongly suggest that the firm's entire U.S. regulatory reporting structure requires wide-ranging remedial action.
Deutsche Bank's U.S. arms have made "no progress" in fixing previously identified issues, NY Fed senior vice president Daniel Muccia said. Muccia is in charge of supervising Deutsche Bank's operations.
One spokesperson for Deutsche Bank told the Journal, we have been working diligently to further strengthen our systems and controls and are committed to being best in class.
The bank said it would spend €1 billion annually an appoint 1,300 employees -- which includes 500 in compliance, risk, and technology -- to U.S. operations to oversee changes.
Deutsche Bank is down 2.4 percent.
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