US Fed: Deutsche Bank fails 'stress test'

Washington, June 28: German banking giant Deutsche Bank's American operations failed the US Federal Reserve's stress test due to "widespread and critical deficiencies" in risk management, the central bank said Thursday.

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."

(AFP/APP)