Deutsche Bank sees capital hit as Basel rules add to legal woes
London
DEUTSCHE Bank AG, which has faced the highest legal bills among continental European lenders, will probably set aside even more capital or shrink businesses as global regulators tighten the rules for how lenders measure risk.
"The big issue for us, and this is a little idiosyncratic to us, is on the operational risk side," Deutsche Bank's chief executive officer John Cryan told investors at a conference in New York this week. Implementing rules put forward by the Basel Committee on Banking Supervision for calculating so-called operational risk could lead to "quite a significant inflation in the amount of capital that would be required", he said.
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