Wednesday

26th Apr 2017

Deutsche Bank under fire in the US

  • Deutsche Bank was involved in a series of scandals over the past few years (Photo: orkomedix)

Two separate reports by the US central bank and the Senate have criticised Deutsche Bank for having internal irregularities and for helping investment funds to avoid taxes.

Documents obtained by the Wall Street Journal show that Germany's largest commercial bank has produced "low quality, inaccurate and unreliable" reports to the Federal Reserve Bank of New York.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

"The size and breadth of errors strongly suggest that the firm's entire US regulatory reporting structure requires wide-ranging remedial action," the Fed paper concludes.

Separately, an investigation by the US Senate into the dealings of Deutsche Bank and Barclays, two of Europe's largest banks, concluded on Tuesday (22 July) that they have sold complex financial products which allowed hedge funds to avoid US taxes.

The scheme has cost the US government billions of dollars in tax revenues, according to the Senate report, which does not say that Deutsche Bank has done anything illegal.

The two probes are only the latest in a series of scandals and legal disputes, notably fraud and rate fixing, which have seriously dented the image of Germany's largest commercial bank and weighed on its profits.

Back in January, Deutsche Bank posted losses of €1.15 billion for the previous three months due to heavy costs for litigation and restructuring and warned that in 2014 more of this will happen.

Fresh corruption scandal engulfs Deutsche Bank

After being fined for rate-fixing and convicted for deceiving customers, Deutsche Bank finds itself embroiled in a new scandal: hiring the offspring of Chinese politicians in return for contracts.

Scandals drain Deutsche Bank's coffers

Germany's largest bank posted €2.2 billion losses in the last three months, largely due to a series of investigations into alleged fraud, tax evasion and rate-rigging. Its new management promises a "change of culture."

Analysis

Deutsche Bank crisis tests EU regulation

EU finance ministers insist that the bank's losses are not a systemic threat, but they revive the debate about the safeguards put in place after the financial crisis.

Eurogroup makes 'progress' on Greek deal

Eurozone ministers endorsed an agreement in principle between the Greek government and its creditors over a new package of reforms. But talks on fiscal targets and debt could still block a final agreement.

New anti-trust complaint looms over Microsoft

At least three security software companies “met several times” with the European Commission to complain about Microsoft’s alleged abuse of its market position. A formal case could follow.

New anti-trust complaint looms over Microsoft

At least three security software companies “met several times” with the European Commission to complain about Microsoft’s alleged abuse of its market position. A formal case could follow.

Investigation

MEPs oppose EU agency to prevent Dieselgate II

The European Parliament said on Tuesday that there should be more EU oversight on how cars are approved, but stopped short of calling for an independent EU agency.

News in Brief

  1. EU Commission launches probe into Hungary's university law
  2. Scots slowly losing appetite for independence - poll
  3. Council of Europe puts Turkey on watch list
  4. EU to put parental leave on political agenda
  5. Israel cancels German meeting over human rights groups
  6. Hungary's Orban will participate in EU parliament debate
  7. Malta floats cash-for-refugees plan
  8. Ivanka Trump to meet Merkel at Berlin women's conference

Stakeholders' Highlights

  1. UNICEFRace Against Time to Save Millions of Lives in Yemen
  2. Nordic Council of MinistersDeveloping Independent Russian-Language Media in the Baltic Countries
  3. Swedish EnterprisesReform of the European Electricity Market: Lessons from the Nordics, Brussels 2 May
  4. Malta EU 2017Green Light Given for New EU Regulation to Bolster External Border Checks
  5. Counter BalanceCall for EU Commission to Withdraw Support of Trans-Adriatic Pipeline
  6. ACCAEconomic Confidence at Highest Since 2015
  7. European Federation of Allergy and Airways60%-90% of Your Life Is Spent Indoors. How Does Poor Indoor Air Quality Affect You?
  8. European Gaming and Betting AssociationCJEU Confirms Obligation for a Transparent Licensing Process
  9. Nordic Council of MinistersNordic Region and the US: A Time of Warlike Rhetoric and Militarisation?
  10. European Free AllianceEFA MEPs Vote in Favor of European Parliament's Brexit Mandate
  11. Mission of China to the EUXinhua Insight: China to Open up Like Never Before
  12. World VisionViolence Becomes New Normal for Syrian Children

Latest News

  1. European states still top media freedom list
  2. Let’s not put European public health at risk
  3. Threatened Budapest university calls for EU support
  4. Orban set to face down EU threats
  5. Dont expect 'quick fix' in Syria, China tells EU
  6. Russische schwarze Kassen bedrohen EU Demokratie
  7. Libya commanders in Brussels for migration talks
  8. Mixed review for EU asylum spots in Greece and Italy