(Bloomberg) -- Deutsche Bank AG, Europe’s largest investment bank, dropped in Frankfurt trading after the Federal Reserve Bank of New York was saidto have faulted the regulatory reports of some of the firm’s U.S. businesses last year.
The regulator sent the bank a letter in December saying a review of its U.S. operations found they suffer from inadequate oversight, Jordan Thomas, a lawyer at Labaton Sucharow LLP, representing a former Deutsche Bank employee who has accused the company of masking losses, said by phone from New York today. He declined to say how he came to see the letter, whose contents were first reported by the Wall Street Journal late yesterday.
Global banks are grappling with stricter compliance and reporting standards as regulators seek to avoid a repeat of the 2008 financial crisis as well as the market manipulation and other alleged wrongdoing of traders. Deutsche Bank has pledged to meet stricter capital requirements for foreign banks operating in the U.S. and plans to increase the number of compliance staff it has in the country. The shares slumped as much as 2.8%, the biggest intraday drop since July 10.
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