By Katherin Jones and Arno Schuetze FRANKFURT (Reuters) - The Federal Reserve Bank of New York has found serious problems in Deutsche Bank AG's U.S. operations, including shoddy financial reporting, weak technology and inadequate auditing and oversight, people close to the matter told Reuters. In a letter to the German lender's executives last December, a senior official with the New York Fed described financial reports produced by some of the bank's U.S. divisions as "low quality, inaccurate and unreliable", said one of the sources, who is familiar with the letter. The New York Fed, as the U.S. central bank's eyes and ears on Wall Street, directly supervises the biggest U.S. and foreign banks, partly through embedded regulators who go to work each day inside the firms. "The size and breadth of errors strongly suggest that the firm's entire U.S. regulatory reporting structure requires wide-ranging remedial action," said the letter, first reported by the Wall Street Journal.
General Motors Co on Wednesday announced six recalls covering 717,950 vehicles in the United States for varying reasons, although none were related to ignition switch issues. GM has recalled nearly 15 million vehicles worldwide this year for potentially lethal issues with ignition switches. Vehicles involved in the recalls announced Wednesday have been linked to two crashes and three injuries but no deaths, GM said. Most of GM's recalls this year have been for older models, but many of the recalls announced Wednesday are for current-model vehicles, including about 57,000 Chevrolet Impala sedans from the 2014 model year for the loss of power steering.
By Ryan Vlastelica NEW YORK (Reuters) - Stocks were largely higher on Wednesday, with the S&P 500 hitting another record high after bullish results from tech giants Apple and Microsoft, though technical resistance and conflicts in Ukraine and the Gaza Strip kept gains in check. The Nasdaq Biotech index jumped 1.9 percent in its fourth straight day of gains. Apple Inc and Microsoft Corp rose following results posted late Tuesday, with Apple up 3 percent to a 22-month high as concerns faded about the iPhone maker's margins.
PepsiCo Inc's PEP.N higher-than-expected quarterly profit could give the company more ammunition against an activist investor who wants it to separate its snack and beverage businesses. It also reported a 2 percent organic sales increase in its beverage business, which includes the Gatorade and Tropicana brands. The sales increases were partly a result of price hikes that PepsiCo implemented as it launched new products which usually command higher prices. PepsiCo shares were up 2.7 percent at $91.59 on Wednesday afternoon on the New York Stock Exchange.