MOSCOW, July 23 (RIA Novosti) - The Federal Reserve Bank of New York has detected significant problems in the operations of Deutsche Bank in the United States, Reuters reported Wednesday, referring to an unnamed source.
“The size and breadth of errors strongly suggest that the firm's entire U.S. regulatory reporting structure requires wide-ranging remedial action,” said the letter from a senior New York Fed official to the German executives written in December 2013, according to Reuters, with reference to the Wall Street Journal.
According to the US authorities, the German bank has been recently suffering from poor financial reporting, feeble technology, inadequate auditing and poor oversight.
Germany’s largest bank has attracted US regulators’ attention before, with investigations over the financial crisis and criticism that it is cushioned too thinly against potential losses. The bank has also been accused of helping hedge funds clients to avoid taxes.
Deutsche Bank announced it was investing $1.35 billion in upgrading its internal systems with about 1,300 people set to work on the improvements.
In the same letter from the Federal Reserve Bank, it was stated that Deutsche Bank made no progress in fixing the problems it had already been experiencing.