FRANKFURT, July 29 Deutsche Bank is
hiring 500 people in the United States to make sure its
regulatory reporting complies with demands of local authorities,
Chief Financial Officer Stefan Krause said on Tuesday.
The Federal Reserve Bank of New York has criticised Deutsche
Bank's U.S. operations for "inaccurate and unreliable"
reporting, weak technology and inadequate auditing and
Krause said Deutsche Bank was investing 1 billion euros
($1.3 billion) to ensure systems and controls were best in
class. "We are dedicating 1,300 people to the effort including
around 500 being hired in the U.S. this year," Krause told
analysts on a conference call.
"We are confident that the programme we have in place will
fully address our regulatory reporting requirements within the
necessary time frame," he added.
The New York Fed, as the U.S. central bank's eyes and ears
on Wall Street, directly supervises the biggest U.S. and foreign
banks, partly through embedded regulators who go to work each
day inside the firms.
In late 2013 it said in a letter to Deutsche Bank's
executives: "The size and breadth of errors strongly suggest
that the firm's entire U.S. regulatory reporting structure
requires wide-ranging remedial action."
The letter was a blow to Deutsche Bank co-Chief Executives
Juergen Fitschen and Anshu Jain, who have been seeking to
transform the lender's corporate culture amid scandals,
investigations and fines following the financial crisis of
($1 = 0.7446 Euros)
(Reporting by Arno Schuetze; Editing by Mark Potter)