Deutsche Bank Didn’t Heed ECB Request to Pause Leveraged Finance
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Deutsche Bank AG didn’t heed a recommendation from the European Central Bank to suspend parts of its leveraged finance operations after the regulator identified shortcomings in how it manages risk in that business, a person familiar with the matter said.
Deutsche Bank took remedial action within the given time frame but didn’t follow the ECB’s request to halt high-risk transactions until the issue was resolved, the person said, asking not to be identified discussing private information. The ECB made the non-binding recommendation earlier this year following a routine audit, the person said.