Deutsche Bank fails Fed stress test while three U.S. lenders stumble

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Deutsche Bank AG’s (DBKGn.DE) U.S. subsidiary failed on Thursday the second part of the U.S. Federal Reserve’s annual stress tests due to “widespread and critical deficiencies” in the bank’s capital planning controls.

The Fed board’s unanimous objection to Deutsche Bank’s U.S. capital plan marks another blow for the German lender, sending its shares down 1 percent after hours. Its financial health globally has been under intense scrutiny after S&P cut its rating and questioned its plan to return to profitability.

The Fed also placed conditions on three banks that passed the test. Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N) cannot increase their capital distributions and State Street Corp (STT.N) must improve its counterparty risk management and analysis, the Fed said…

Read more : Reuters, 28.06.2018