Deutsche Bank hires new executive to help with future stress tests

Deutsche Bank stress tests

After the US unit failed the most recent Federal Reserve stress tests, Deutsche Bank have announced they are hiring Paul Saltzman, an experienced financial executive, to help with future tests.

Saltzman will join Deutsche Bank as vice chairman and executive sponsor of the Comprehensive Capital Analysis and Review (CCAR), which is more commonly known as the annual bank stress test.

According to the Wall Street Journal, the move was announced in a memorandum between Deutsche Bank executives Jacques Brand, CEO of the bank’s US business and Marcus Schenck, who is set to be the new finance chief.

Reporting to Brand and Schenck, Saltzman’s new position will be to oversee Deutsche Bank’s CCAR test globally. He will work with Laura Hamilton, former employee of J.P. Morgan Chase & Co., who has also been recently appointed by Deutsche Bank to oversee the CCAR process for their technology and operations arm.

Saltzman is the former president of the trade group, Clearing House Association and was also general counsel at the limited liability company, Clearing House Payments. Prior to that, he held a similar role at the hedge fund firm Ellington Management Group and was the chief operating officer at the electronic- trading business, eSpeed.

The CCAR process can help larger banks determine plans to return capital to shareholders in the form of dividend payments and stock buybacks.

Deutsche Bank’s annual capital plan was rejected earlier this year because the Federal Reserve found significant deficiencies in how the bank predicted losses, imposed internal controls and identified risk, according to NASDAQ.

These failures also come at a time when the bank is attempting to consolidate their security by complying to new rules which they hope will encourage their international clients to have more confidence in them.

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