Deutsche and Santander fail US stress test

FXStreet (Bali) - Deutsche and Santander have failed the US bank stress test, the Financial Times reports.

Key Quotes - Fast FT

"The Federal Reserve vetoed the US capital plans of Deutsche Bank and Santander in a stinging rebuke for the European banks even as every US lender passed the test for the first time, paving the way for the biggest payouts to shareholders since the financial crisis."

"US operations of Deutsche, Germany's largest bank, and Santander, the biggest bank in Spain, were found to have serious deficiencies in capital planning and risk management, according to a senior Fed official."

"The senior official said that any bank with chronic problems in those areas could eventually face enforcement actions up to and including a cease-and-desist order..."

"Santander has now failed the test - known as the Comprehensive Capital Analysis and Review (CCAR) - two years in succession; Deutsche was tested for the first time this year."