Sunday, January 29, 2017

Bundesbank criticises the height of America’s banks-penalties – FAZ – Frankfurter Allgemeine Zeitung

Andreas Dombret member of the Executive Board of the Deutsche Bundesbank.

The Bundesbank, complained to the output weakness of the German banks, and criticized the amount of fines imposed by America for financial institutions. “I’m increasingly Worried about the long-term earnings power of the banks”, said Bundesbank Executive Board member Andreas Dombret published the “daily mirror”. The traffic lights stand for “dark yellow, and we don’t need to see that it turns on Red”.

For the height of the American penalties against banks for the lack of understanding. That institutions for misconduct would be punished, properly. “But at the scale of the penalty payments in the United States, one wonders how something like this dizziness comes from the dizzying height.”

The Deutsche Bank had reached an agreement recently with the Department of justice in Washington on a comparison. The money the house has to pay, because transactions on the American real estate market a total of 7.2 billion dollars. Other international financial institutions were punished in the United States.

Dombret made it clear that he sees the current earnings situation of the German money houses is critical. While the stress test had shown last year that they were positioned in terms of capital and liquidity “reasonable”. There remain, however, the question of whether the institutions could also achieve long-term adequate profits. This question is all the more, because the economy is developing relatively well. “I wonder, if not now, when the banks’ reserves for bad times.”

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An important role low interest rates play according to his words, when it comes to the earnings weakness; these are also a result of the expansionary monetary policy of the European Central Bank. Finally, 75 percent of the Bank were in Germany, income from the interest margin. The institutions need to make themselves independent of them, such as through higher fees, mergers or the setting is not profitable stores.

With mixed feelings, looks Dombret on the United States, according to Donald trump’s office. It is a new appointment in key positions of the American Bank supervision from the draw. “The experience has shown that a break in the Supervisory practice.” It should lead to a Deregulation wave in the world, it would be a Problem. A lax banking regulation would be dangerous.


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