Posts tagged "BaFin"
Proposed Rule for Foreign Banks is Response to German Bank’s Negative Capital in U.S.

Proposed Rule for Foreign Banks is Response to German Bank’s Negative Capital in U.S.

Comments supporting the Federal Reserve’s proposed rule for foreign banks were submitted today by UNITE HERE.  The largest of the foreign banks affected by this Proposed Rule is Deutsche Bank AG.  “We believe the German lender’s longstanding capital and liquidity issues pose a real risk to the global financial system, and that the Proposed Rule would significantly mitigate that risk while restoring competitive equality between foreign banks and domestic competitors,” said Marty Leary and Meredith Schafer in the letter to the Federal Reserve. The complete comment on the Proposed Rule can be read here. In addition, thousands of people from Hawaii to Boston have written to the Federal Reserve supporting the proposed rule and highlighting Deutsche Bank’s too-big-to-fail status. German regulators in particular have helped create the conditions necessitating enhanced prudential standards in the U.S. through resistance to higher capital and liquidity standards in the Basel discussions.  Deutsche Bank’s U.S. subsidiary... {read more}
Poll: Should Deutsche Bank consent to the release of BaFin's LIBOR probe results?

Poll: Should Deutsche Bank consent to the release of BaFin’s LIBOR probe results?

This month BaFin will complete its probe of LIBOR rate-rigging allegations at Deutsche Bank.  Opposition party politicians in Germany have asked BaFin to release the results of its investigation into Deutsche Bank’s alleged role in the LIBOR rate-rigging scandal.  BaFin claims that under German bank secrecy law it is unable to release the investigation without the bank’s consent.   {read more}
Poll: Will Germany Break Up Deutsche Bank?

Poll: Will Germany Break Up Deutsche Bank?

It was reported by The Wall Street Journal that the German Finance Ministry, under the ruling coalition party, is planning to propose a new draft law that would break up Germany’s big banks, ring-fencing investment banking from customer deposits. Reports have also suggested that BaFin has asked DB to simulate a split of its consumer banking and trading businesses, along the lines recommended by the Liikanen group. {read more}
Sheila Bair: In resisting stronger capital rules, German bank regulators used “tactics reminiscent of those used by segregationists” opposed to civil rights in the U.S.

Sheila Bair: In resisting stronger capital rules, German bank regulators used “tactics reminiscent of those used by segregationists” opposed to civil rights in the U.S.

  “Our most important relationship is with our regulator—guess where I was this afternoon?” — Anshu Jain, quoted in The Economist, 1/24/13 In a previous post, we commented on Federal Reserve Governor Dan Tarullo’s understated view that the “likelihood that some home-country governments of significant international firms will backstop their banks’ foreign operations in a crisis appears to have diminished.” {read more}