Deutsche Bank CFO sees no capital transfer to U.S. unit -paper
BERLIN, July 6
BERLIN, July 6 (Reuters) - Germany's Deutsche Bank will not need to transfer capital holdings to its U.S. subsidiary to meet the U.S.'s stricter regulatory requirements, Boersen-Zeitung reported on Saturday, citing an interview with finance chief Stefan Krause.
"Because of the Americans' definition of capital, we can use supplementary capital to fulfil these requirements," CFO Krause was quoted as saying. "For that reason, a transfer of capital from Germany will not be necessary here."
U.S. regulators are planning stricter rules on how much equity foreign lenders must hold.
Banks complain equity is the most expensive way to fund their business, but it is the safest from a taxpayer's or a regulator's perspective. That is because shareholders are the first to lose their money in case of bankruptcy.
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