The Federal Reserve Bank of New York and the state\u2019s Department of Financial Services want Deutsche Bank AG (DB) to improve its technology and compliance procedures and get rid of risk-management deficiencies. The U.S. regulators made the demand to the financial institution via a private memorandum. <\/p>\n
The Wall Street Journal<\/em> says the confidential pact went into effect two years ago. While it doesn\u2019t appear that regulators plan to take other action against Deutsche Bank over this matter, the New York Fed did give the financial institutional a deadline of the middle of 2015 to remedy a number of priority issues. Sources tell The WSJ<\/em> that there is worry that reporting or trading mistakes by the bank could result in bigger, unplanned losses for the financial institution and even impact the market.<\/p>\n The Wall Street Journal<\/em> recently reported that the New York Fed discovered that Deutsche Bank\u2019s U.S. operations has known that it had serious financial reporting problems for years but did nothing to remedy the matter. Last year, New York Fed senior vice president Daniel Muccia sent a letter to the bank’s executives saying that the firm’s reports were not accurate and of poor quality. The extent of their errors was such that \u201cwide-ranking remedial action\u201d is needed. Muccia called the deficiencies a \u201csystemic breakdown.” He said that the regulator has been worried about Deutsche Bank\u2019s US outfit for years. <\/p>\n