Deutsche Bank Faces Yet More Awkward Questions

For the umpteenth time, Deutsche Bank AG is ensnared in an alleged regulatory blunder. Except this time, the stakes are greater than its own integrity: Confidence in its regulator, the European Central Bank, is on the line too, a Bloomberg View reported. The ECB is considering whether to probe Germany’s biggest bank for trading in its riskiest debt without the regulator’s approval, according to the German newspaper Sueddeutsche Zeitung. In an effort to maintain liquidity in the bonds, the firm’s securities unit continued to make a market in the notes well after they were sold to investors. Typically, banks need to be authorized to buy their own subordinated bonds because they count as equity capital that should help a lender absorb potential losses. Read more

Location