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Deutsche Bank Shares Hit Record Low After WSJ Report on Fed Assessment

Martin Baccardax

shares fell sharply Thursday after the Wall Street Journal reported that the Federal Reserve has deemed the German lender's U.S. operations as "troubled" in a previously written assessment that hasn't been made public. The assessment effectively meant that the bank, Germany's largest, has had to clear many operational decisions through Fed officials in either Washington or New York for at least the past year, the WSJ noted, citing sources familiar with the matter. Reports of the Fed assessment follow Deutsche Bank's planned reduction of its U.S. equity and bond market trading divisions and significant jobs cuts under Christian Sewing as the new CEO attempts to reverse years of losses and a loss of investor faith in one of Europe's most important lenders.