The WSJ has obtained documents from the NY Fed that show that Deutsche Bank’s US operations suffer from a litany of serious problems in financial reporting, auditing and oversight.
In a letter to Deutsche Bank executives last December, a senior official with the New York Fed wrote that financial reports produced by some of the bank’s U.S. arms “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.”
The one saving grace for the DB is that it’s been 7 months since the letters were sent and some of the problems may have been fixed (or hidden better).
