Economic downturn usa

Deutsche Bank USA failed 'stress test': US Fed Reserve, Photo AFP The Fed gave a "conditional" pass to Wall Street investment behemoths Goldman Sachs and Morgan Stanley, whose capital backstops sank below required levels due to one-time charges tied to December's tax cuts, officials said. But the Fed "objected to the capital plan of DB USA Corporation because of widespread and critical deficiencies across the firm's capital planning practices," according to the annual test results. Should DB hit hard times in an economic downturn or financial crisis, poor data capabilities and internal controls, bad forecasts for revenue and losses under stress, and substandard internal audits would leave the bank in danger, the Fed announced. The stinging rebuke for Deutsche Bank, Europe's second-largest lender, came as shareholders continue express serious doubts about the bank's health. The bank's shares on Wednesday hit a two-year low in Frankfurt. Deutsche Bank's US operations failed stress … [Read more...] about Deutsche Bank USA failed ‘stress test’: US Fed Reserve