So news comes out today that Deutsche Bank received special treat from European regulators during this summer’s EU bank stress test in order to pass.
Germany’s largest lender was allowed by the European Central Bank to included the $4 billion gains from selling its stake in Hua Xia, Chinese lender, despite the deal not closing by the end of 2015.
While the deal was footnoted in the test results, other banks that had pending deals were not allowed to use those proceeds for the test.
“This [Deutsche’s treatment] is perplexing,” Chris Wheeler, an analyst at Atlantic Equities, told the FT.
“The circumstances mean that it is inevitable the market watchers will be suspicious and have some concern about the veracity of the results,” he added.
Deutsche Bank has failed US stress test two years in a row.
Meanwhile in Washington over the weekend the bank’s CEO John Cryon could not come to an agreement with Justice department officials in settlement talks over the $14 billion fine dealing with the bank’s handling of mortgage bond securities in 2006-2007 time period..
Shares of Deutsche Bank are down 43 percent this year.