The American "daughter" of Deutsche Bank failed the second round of the annual testing of the US Federal Reserve System.
The Wall Street Journal writes about this.
The Fed said that the bank identified "critical shortcomings in capital management practices." Also, the organization identified problems with income forecasting and risk management, losses in key business areas.
The Fed expressed concern about the bank's ability to determine its capital needs on a prospective basis. In Deutsche Bank, in response to the message, the Fed said that the test results will not affect the actions with capital and payment of dividends.
At the same time, Goldman Sachs and Morgan Stanley, the US financial authorities told to freeze the amount of dividends, writes Financial Times. In the case of the other large banks, the Fed acknowledged that their reserves are sufficient to keep them in the event of a new financial crisis.
Goldman Sachs was allowed to pay dividends of $ 6.3 billion versus $ 9.9 billion a year earlier (in fact, the bank then directed only $ 5.7 billion for dividends).
The stress tests of the Fed are designed to find out whether the bank is able to continue lending in the financial crisis. The current round of testing was successfully passed by 34 of 35 largest US banks, including JP Morgan Chase, Bank of America, Citigroup and Wells Fargo, the WSJ said.
At the end of May, the Deutsche Bank division in the US fell into the list of banks with serious threats to financial solvency. At that time, the bank's assets were valued at more than $ 42.1 billion.