Wednesday 22 November 2017

Shares tank as Deutsche Bank says it doesn't need bailout

Deutsche Bank ceo John Cryan
Deutsche Bank ceo John Cryan

Kathrin Jones and Joseph Nasri

German's biggest lender has insisted it doesn't need a bailout. Deutsche Bank said yesterday it had no need for German government help to meet a $14bn (€12.4bn) US demand to settle claims it missold mortgage-backed securities, as its shares hit a record low.

German magazine 'Focus' reported at the weekend that Chancellor Angela Merkel had met Deutsche Bank chief executive John Cryan over the summer and had indicated he could expect no help from Berlin in resolving the bank's dispute with the US Department of Justice (DoJ).

Mrs Merkel had also ruled out state aid to Deutsche Bank, the magazine said, citing government sources.

Deutsche Bank responded yesterday, saying it did not require assistance from Berlin.

"John Cryan at no point asked the German Chancellor for the government to intervene in the US Justice Department's mortgages case," a Deutsche Bank spokesman said.

The bank's shares hit a record low of €10.62 yesterday and were 6pc lower at €10.72 by 11.40am.

A litany of legal troubles, of which the $14bn DoJ claim is only the latest, have spurred worries it may need to raise capital. Those concerns have contributed to a 50pc drop in its share price since the start of the year. But the bank spokesman said capital raising was not on the agenda.

"There is currently no question of a capital increase. We are meeting all regulatory requirements," the spokesman said. German government spokesman Steffen Seibert said yesterday there were no grounds for speculating about the government assistance to Deutsche Bank and declined to say whether there had been any contact between Deutsche Bank and the German government.

Angela Merkel regularly holds talks with senior business figures, he said. (Reuters)

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business