Huge One Day Loss at Deutsche Bank Raises Red Flags

The transcript discusses Deutsche Bank's unusual VAR measure, which raised regulatory concerns due to its outsized nature. The Federal Reserve and other regulators are scrutinizing the bank's risk management, especially since US regulators can only see part of the bank's operations. The upcoming stress tests will provide more insights into the bank's US subsidiary. The transcript also highlights Deutsche Bank's operational risks and restructuring efforts, including layoffs in its US investment bank.

What operational risks are associated with Deutsche Bank's trading activities?

What changes are occurring within Deutsche Bank's U.S. investment banking operations?