Posts tagged "FDIC"
UNITE HERE Calls on Nevada Gaming Regulators to Investigate Deutsche Bank Role in Station Casinos

UNITE HERE Calls on Nevada Gaming Regulators to Investigate Deutsche Bank Role in Station Casinos

UNITE HERE’s Culinary Workers Union Local 226 has called on Nevada gaming regulators to investigate and determine Deutsche Bank’s suitability to be a casino owner following a guilty plea to criminal wire fraud by a subsidiary of the bank, the bank’s admissions of misconduct and its agreements to pay $2.519 billion in penalties to U.S. and British authorities to settle charges of rigging global benchmark interest rates namely the London Interbank Offer Rate (Libor). {read more}
Prospective Clients: Will Deutsche Bank’s US Operations Remain Stable?

Prospective Clients: Will Deutsche Bank’s US Operations Remain Stable?

In addition to the legal and headline risks, Deutsche Bank has been facing intense criticism from U.S. regulators for capital concerns, culminating in a new rule proposed by the Fed in December 2012 to regulate foreign banks’ U.S. subsidiaries (known as the “Anti-Deutsche Bank Rule” on Wall Street).  One of the reasons for the new rule is to prevent another large-scale financial crisis that would force the Federal Reserve to provide billions of dollars in emergency funding to foreign banks operating in the U.S. Recently the head of the FDIC called the bank, “horribly undercapitalized.”  {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}
Be Careful What You Wish For

Be Careful What You Wish For

In April 2012, Deutsche Bank submitted comments to the Federal Reserve recommending that U.S. subsidiaries of foreign banks be categorized as “intermediate holding companies” (IHCs) and remain exempt from the capital and liquidity requirements of Dodd-Frank. As we pointed out at the time, this proposal might have been the only way for the bank to reap the benefits of the recent reorganization of its U.S. holding company Taunus, which had been undertaken explicitly to avoid the capital and liquidity rules mandated by the Collins Amendment.  By deregistering Taunus as a bank holding company in February 2012, the bank had perhaps postponed its day of reckoning with the Collins Amendment. {read more}