Deutsche & Santander Fail ‘Stress Tests’ – Risk of Bail-Ins
By: GoldCore
GoldSeek.com
Thursday, 12 March 2015
– Largest banks in Germany and Spain fail Federal Reserve’s ‘stress tests’
– Stress tests designed to assess whether lenders can withstand another financial crisis
– U.S. subsidiaries fail Fed stress tests on ‘‘widespread and critical deficiencies’’ in identifying risks
– Deutsche and Santander bank fail on “qualitative” grounds
– 28 out of 31 banks passed the stress test, with BoA required to resubmit plans
– Both Deutsche and Santander passed questionable ECB stress tests in October
– Developing bail-in regime poses risks to depositors
The Federal Reserve has issued a stinging rebuke to two of Europe’s largest banks – Deutsche Bank and Santander.
U.S. operations of Deutsche, Germany’s largest bank, and Santander, the biggest bank in Spain and a large player in the UK market, were found to have serious deficiencies in capital planning and risk management, according to a senior Federal Reserve official.
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