Deutsche Bank’s CEO is trying to reassure employees that the bank’s turnaround will succeed despite more negative news including a credit downgrade from Standard & Poor’s.

Christian Sewing acknowledged in a message Friday to staff that “many of you are sick and tired of bad news” but assured them that the bank has solid capital buffers.

He noted that the ratings agency predicts the bank will eventually return to steady profits and that its outlook was rated as “stable,” meaning further downgrades are not envisioned.

“In this respect, there’s good news in the bad: they trust us to succeed with the change which is required,” Sewing wrote. “But that also means we have to deliver – speedily and rigorously. And that’s exactly what we’re doing.”

Deutsche Bank said last week that it would cut 7,000 jobs and “significantly reshape” its sales and trading business. Whether the job cuts will affect the bank’s software development operations in Cary is unclear.

A spokesperson for the bank contacted by WRAL TechWire said the firm would have no comment.

Deutsche Bank bases its software and applications development group in Cary where some 900 people work. It continues to hire at that location with 15 open positions listed at a jobs site as of last week.

Stock plunges

Deutsche Bank’s stock plunged to a record low on news that the Federal Reserve labeled the bank’s US business “troubled.”

The secret and rare designation from the Fed took place about a year ago and forced Deutsche Bank to dial back its risk taking, The Wall Street Journal reported on Thursday.

The “troubled condition” label has forced Deutsche Bank to get the Fed’s approval for decisions including hiring and firing senior managers, reassigning job duties and making severance payments, the Journal reported.

Under Sewing, Deutsche Bank is retreating from Wall Street and making cutting its workforce from just over 97,000 to below 90,000.

Sewing took over as CEO in April after predecessor John Cryan was shown the door after three years of annual losses. The bank has suffered from high costs and heavy fines and penalties for past misconduct. Sewing announced last week that the bank would cut its workforce from 97,000 to under 90,000 and refocus its global investment banking business on its European core, while cutting back on stocks trading operations in New York and London.

Deutsche Bank declined to comment to CNNMoney about “specific regulatory feedback.” However, Deutsche Bank acknowledged in a statement that “our regulators have identified various areas for improvement relating to our control environment and infrastructure.” Deutsche Bank also said in a statement that its US banking subsidiary has a “very robust balance sheet” and its parent company is “very well capitalized.”

“We are highly focused on addressing identified weaknesses in our US operations,” the bank said.

The Fed declined to comment.

A red mark

A recent blunder by Deutsche Bank raised questions about the company’s internal systems of checks and balances. Deutsche Bank accidentally sent a $35 billion payment in March to an exchange it does business with, a person familiar with the matter told CNNMoney last month. The epic mistake, which Deutsche Bank blamed on an “operational error,” was for $5 billion more than Deutsche Bank’s entire market value at the time.

It’s not just the Fed taking notice of Deutsche Bank’s problems. Deutsche Bank Trust Company America’s, the bank’s FDIC-insured subsidiary, has been added to the FDIC’s “Problem Banks” list, the Journal reported.

Problem banks are deemed by the FDIC to be at risk of failure.

The red mark for Deutsche Bank’s American divisions stands in stark contrast with the robust health of the US banking system.

US banks hauled in record profits during the first quarter, with 70% of the nation’s lenders growing their bottom lines, according to the FDIC. The FDIC’s list of problem banks fell to just 92, the lowest since 2008.