Banca Monte dei Paschi di Siena SpA’s accounting of loans obtained from Deutsche Bank AG and Nomura Holdings Inc. is being scrutinized by financial rule- setters as the Italian bank prepares to repay its bailout.
Deutsche Bank AG, Europe’s largest investment bank by revenue, will shrink its U.S. division by as much as 25 percent to meet Federal Reserve capital rules, according to a person briefed on the matter.
Deutsche Bank AG, Germany’s biggest lender, said it adjusted how it accounted for a transaction with Banca Monte dei Paschi di Siena SpA after a regulatory probe uncovered information that changed the nature of the deal.
Deutsche Bank AG, Europe’s largest investment bank by revenue, fell as much as 4.5 percent after Barclays Plc analysts cut their rating on the stock, citing fallout from its effort to raise capital as a share of assets.
Deutsche Bank AG, continental Europe’s biggest bank, will reduce its balance sheet as regulators implement stricter rules on the relation of equity to total assets, Chief Financial Officer Stefan Krause said.
Deutsche Bank AG hired law firm Fried Frank Harris Shriver & Jacobson LLP in March 2010 to conduct an internal probe days after a trader alleged the bank had misrepresented the value of derivatives to mask paper losses during the financial crisis.