Yesterday we learned that back in December, the Federal Reserve sent a letter to Deutsche Bank, telling management, in essence, that it ought to set fire to its U.S. operations and collect the insurance money, then get out of the banking business. If the powers that be at DB insisted on sticking with this thing, they’d have a lot of work cut out for themselves, as the Fed’s criticism included the words:
- “low quality”
- “size and breadth of errors”
- “poor data integrity”
- “systemic breakdown”
- “significant operational risk”
- “misstated regulatory reports”
- “requires wide-ranging remedial action”
Clearly, this news would be bad enough on its own, but what really tops it off is that, hilariously, Deutsche’s CFO has devoted 100 percent of his efforts to making this operation what it is today.
Deutsche Bank’s ‘s finance chief, Stefan Krause, has made an overhaul of the bank’s financial-reporting systems a cornerstone of his six-year tenure at the bank. But with U.S. authorities citing serious concerns about the bank’s financial data, Mr. Krause himself is now under pressure. An examination by the Federal Reserve Bank of New York last year found that Deutsche Bank’s giant U.S. operations suffer from a variety of serious financial-reporting problems that the lender has been aware of for years but hasn’t fixed, according to documents reviewed by The Wall Street Journal. Mr. Krause is the ultimate guardian of Deutsche Bank’s financial data and leads a companywide effort to improve the quality of its financial reporting—a project the New York Fed criticized as inadequate.
It would be one thing if DB had gotten to this point by spending 20 minutes each day just making up numbers and the rest of the time at arm-band parties, and being completely upfront during performance reviews that “we have no idea what we’re doing” but to have actually tried, hard, and had this be the result? Umständlich!