July 29, 2014 / 7:31 AM / in 3 years

Deutsche Bank hires 500 staff to address U.S. reporting problems

FRANKFURT, July 29 (Reuters) - 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 oversight.

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 2008-2009.

$1 = 0.7446 Euros Reporting by Arno Schuetze; Editing by Mark Potter

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