According to the US Central Bank, the subsidiary of DB in matters of strategic planning and organization of the internal workflow is not prepared for crises.
The largest German bank, Deutsche Bank (DB), failed in the USA the second part of the stress test conducted by the US Federal Reserve System (FRS), which performs in the country the central bank functions. This was reported in the press release of the federal agency, released on Thursday, June 28, after the closure of stock trading in the United States.
As indicated in the document, DB in matters of strategic planning and organization of the internal workflow is not sufficiently prepared for crisis situations.
The Federal Reserve found “widespread and serious shortcomings” in all models of bank capital planning, data processing, profit and loss forecasting, and recommended that the financial institution transfer “significant investments” to reform existing mechanisms.
Enough capital reserves in case of recession
The first part of the stress test, the results of which were released a week ago, Deutsche Bank, however, was successful. At that stage, capital reserves were assessed in case of recession.
According to AFP, this year the DB subsidiary in the United States — the only one of the 35 banks verified by the Fed — did not pass the stress test.
In mid-June, the New York State Department of Financial Services (DFS) fined Deutsche Bank $ 205 million (about € 177 million). The reason was «violating the laws, unsafe and unreasonable behavior» in foreign exchange transactions.
In particular, from 2007 to 2013, a number of bank employees in online chats “exchanged confidential information, discussed the coordination of trading activities and tried to manipulate exchange rates,” the statement said. The purpose of such actions was «the desire to reduce competition and increase their profits,» according to representatives of DFS.
Bundestag committee approves draft budget for 2018
The budget estimate provides for Germany’s expenses for this year in the amount of 343.6 billion euros. The balance is expected to be zero. Revenues from tax revenues will amount to about 321.3 billion euros. The Bundestag Committee on Budget Affairs approved on the night of Thursday, June 28, the draft federal budget for 2018, submitted by German Minister of Finance Olaf Scholz (Olaf Scholz). Deputies approved expenditure items totaling 343.6 billion euros, which is 3.9 percent more than last year. In the previous version of the document, this indicator was approved at 341 billion euros.
The final balance is zero, while tax revenues are expected to be about 321.3 billion euros.
The CDU / CSU faction expert in the Bundestag on fiscal policy matters, Eckhardt Rehberg, welcomed an increase of investment of 2.8 billion euros to 39.8 billion euros.
Deflate defense spending
In turn, the expert of the “green” Sven-Christian Kindler (Sven-Christian Kindler) strongly criticized the increase in the defense budget by 20 billion euros compared to 2017 (this article was written before the end of the current legal period in 2021) and accused the Ministry of Finance of “ large-scale inflation «military spending. In the same period, the costs of financing the activities of the German Foreign Ministry and the Ministry for Economic Cooperation and Development will be reduced by 580 million euros. “This is a disruptive prioritization strategy that will make the world less secure,” Kindler emphasized.
Earlier, German Minister of Defense Ursula von der Leyen (Ursula von der Leyen) asked before the end of 2021 to allocate for the German Armed Forces — the Bundeswehr — 15 million euros more than provided for in the estimates of the Minister of Finance Olaf Scholz. Additional appropriations are required primarily to cover the costs of arms purchases, management and maintenance of equipment and personnel.
Austria will hold large-scale exercises in case of closure of borders within the EU
Law enforcement, military, and the new Puma police exercise will be held on the Austrian-Slovenian border. Vienna will hold large-scale exercises of law enforcement, military, and the new Puma border guard police on June 26. This was announced by the Austrian vice chancellor and minister of civil service and sports Heinz-Christian Strache in an interview with the newspaper Bild, published on Tuesday, June 26.
The exercises will be held on the border of Austria and Slovenia. “We want to prepare for all possible scenarios and send a clear signal that there will be no more passages through the checkpoint, as in 2015,” Strache, a member of the Austrian Freedom Party, has emphasized.
According to him, the reason for this step «was the debate on the closure of borders within the EU caused by Germany, as well as what is happening on the» Balkan route «. Although officially blocked, smugglers still make a lot of money from transporting refugees.
Federal Chancellor Sebastian Kurtz also told Bild that Austria is ready to “do whatever it takes to defend its borders.”
The Puma border guard units include about 600 personnel. They are part of the Austrian Ministry of the Interior.