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Deutsche Bank U.S. Unit Fails Stress Test as Controls Cited

Laura J Keller, Yalman Onaran
Deutsche Bank U.S. Unit Fails Stress Test as Controls Cited

Deutsche Bank AG failed the first public stress test of its combined U.S. business as the Federal Reserve faulted the company’s internal controls, giving another black eye to executives trying to shore up investor confidence. It cited weaknesses in Deutsche Bank’s risk-management functions and data capabilities, as well as the methodology and assumptions used to forecast how the unit would fare under stress. Of the 18 domestic and foreign banks that faced the qualitative section of the exam, Deutsche Bank was the only one to receive an objection.