Thomas Schwarzer – Wealth Protection Today (Germany) –
The technology of German banks is becoming more and more a risk to our savings and our tax credits. Once again, the state support bank KfW and Deutsche Bank are attracting attention with their incredible misdirections and booking margins. Reason is a completely outdated technique. With the apparently the whole industry has to struggle. According to insiders, the technology in many money houses dates back to the 70s. And urgently needs to be renewed.
A renewed break with the State Bank
On February 20, the state bank KfW mistakenly repaid € 7.6 billion to four different banks.A programmer had apparently triggered automatic multiple payments. These were gradually processed in a holding loop. The damage is about 25,000 euros.
IT is currently a major construction site at KfW.As with the many other banks, too.The entire KfW technology is modernized with high pressure. The project is completed by 2018.
Bafin has switched on. It requires KfW to pay a mark-up on the equity ratio of two percent. In other words, the bank needs to keep more money.
Computer systems from the Stone Age
KfW’s IT problems are in the banking sector.
Existing systems are some 40 years old. Are hopelessly outdated and therefore fault-prone. Computer languages are as Cobal are still part of the “IT Stone Age”.
To daylight the problems always come on when something goes wrong. Otherwise, it is not talked about reluctantly.
At Deutsche Bank, too, the systems are outdated. Again and again there is also mishaps there. Last only a few days ago in online banking. With approximately 175,000 customers were double.The renewal of the entire IT has already been the headline for Deutsche Bank CEO Cryan some time ago.
KfW gets again the title “dümmste bank of Germany”
The Kreditanstalt für Wiederaufbau has earned the title of the most stupid bank in Germany for the second time. Because she is well-versed with transferpensions.
A few years ago, KfW already made a major mistake. To what many of you can still remember well. For which the taxpayer had to pay.
On September 15, around 320 million euros were transferred to the account of the American investment bank. Lehman Brothers at 8:37 am As agreed a few months ago. And the way the computers were programmed.The problem was that Lehman Brothers was broke at the time.All the money was gone and flowed into the insolvency mass.In the end, a loss of around 100 million euros remained. And at a state bank.
With this action, KfW even made it to the title page of the Bild newspaper. And on the desk of the then Finance Minister Steinbrück. The referral referred to as “grotesque mistreatment”. Even the prosecutor’s office in the meantime.
Breakdowns, breakdowns & red numbers
As a consequence of this breakdown, two of the boardmembers (Leinberger and Fleischer) were fired. They then complain about the dismissals and even demanded the disbursement of their annual salaries in the amount of 466,000 euros.In the year of the failure to transfer, KfW slid deeply into the red figures. The bottom line was a loss of 2.8 billion euros. So due to payment to Lehman Brothers.Even worse was the year before. At that time, in 2007, the annual loss accrual to 6.2 billion euros. Because of the imbalance at the IKB Bank.
After that, the chairman of the board of directors, Schröder, began to modernize the dusty shop. A new risk management, a new risk management, additional controlling and a lot of early warning indicators. For a time, this seems to have worked quite a bit. Until the 20th of February 2017 …
Thomas Schwarzer is the capital market expert from PRONOMIO. As an experienced economics and stock market journalist, he has been dealing with the financial world for more than 30 years.
Schwarzer worked for ten years at the news station N24 as an economic moderator, reporter and expert. Almost daily, he arranged economic events for the camera, analyzed the markets and gave viewers help with their daily decisions. At Börse Online, he worked as a stock exchange correspondent and reported daily on the events on the Frankfurt Stock Exchange.
As a radio speaker, he has provided stock market reports several times daily. He has also been active as a trader in recent years. He learned the craft in Canada, where he worked on the floor of the Toronto Stock Exchange. He now pens the Pronomio Brief.
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