Deutsche Bank AG failed the first public stress test of its combined U.S. business as the Federal Reserve faulted the company’s internal controls, giving another black eye to executives trying to shore up investor confidence.
The Fed found “widespread and critical deficiencies across the firm’s capital-planning practices,” according to a statement Thursday. It cited weaknesses in Deutsche Bank’s risk-management functions and data capabilities, as well as the methodology and assumptions used to forecast how the unit would fare under stress.
