Deutsche Bank Faces Another Challenge

ArticleBanking crisisJune 5, 2018 - 6:55:58 AM

The famous bank will face another challenge when the Federal Reserve publishes the first results of the "stress test" on its U.S. operations.

The major German bank is already facing challenges with the American banking regulators on the financial markets, the price of its shares is in free fall. Standard & Poor's recently lowered its credit rating from A- to BBB+.

The downgrade came after the Fed last year designated one of Deutsche Bank's companies as "in trouble".

The results of the Fed's tests, which should be published very soon, will be the next major public barometer of Deutsche Bank's financial soundness.

Although the failure of the US "stress test" would not affect Deutshe Bank's ability to pay dividends to shareholders, the Fed has the power to force repeat offenders to restructure their companies and remove board members...

Source:channelnewsasia.com

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