March 7, 2019 / 5:12 PM / 2 months ago

BUZZ-Deutsche Bank AG: Drops as Fed to not ease stress test for foreign banks

** U.S.-listed shares of Germany’s largest lender fall 5 pct to $8.73

** The U.S. Federal Reserve on Wed. said it would no longer flunk banks based on operational or risk management lapses in its annual health check of domestic banks

** U.S. subsidiaries of five foreign lenders - Deutsche Bank , Credit Suisse Group AG, UBS Group AG , Barclays Plc and TD Bank - would still have to face a qualitative objection

** Most banks that have failed the test in the past, stumbled on qualitative objection. Banks that receive an objection from the Fed are required to adjust their capital distribution plans

** U.S.-listed shares of UBS down ~3 pct, Credit Suisse and Barclays ~2 pct, TD Bank 0.5 pct

** DB has been trying to turn itself around under a new leadership, but has faced a series of hurdles, including allegations of money laundering, ratings downgrades and failed stress tests

** DB’s shares have lost nearly half their value in the past year; down 47 pct including the day’s losses (Reporting by Bharath Manjesh in Bengaluru)

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