Deutsche Bank says to solve problems without help from Berlin

Published 27/09/2016 in Business, Economy & Finance

Deutsche Bank says to solve problems without help from Berlin
The headquarters of Germany’s Deutsche Bank is photographed early evening in Frankfurt, Germany, January 26, 2016. REUTERS/Kai Pfaffenbach/File Photo

Deutsche Bank (DBKGn.DE) will solve its problems without relying on help from Berlin, Germany’s flagship lender said on Monday.

FRANKFURT Deutsche Bank (DBKGn.DE) will solve its problems without relying on help from Berlin, Germany’s flagship lender said on Monday.

“(Chief Executive) John Cryan at no point asked the German Chancellor for the government to intervene in the U.S. Justice Department’s mortgages case,” a Deutsche Bank spokesman said on Monday.

Shares in Germany’s biggest bank hit a record low of 10.62 euros on Monday after a German magazine reported over the weekend that German Chancellor Angela Merkel had ruled out aiding the lender in it talks with U.S. justice officials.

“Deutsche Bank is determined to resolve its challenges on its own,” the spokesman said.

“There is currently no question of a capital increase. We are meeting all regulatory requirements,” the spokesman added.

Cryan and Merkel met in July to discuss Brexit repercussions but did not touch on the matter of potential help with U.S. legal proceedings, a person close to the matter said.

Deutsche Bank said in mid-September it would fight a $14 billion demand from the DoJ to settle a mortgage mis-selling case.

Analysts at Mediobanca said that a rights issue looked inevitable.

“John Cryan always said that a rights issue would only be triggered by a larger-than expected litigation charge and it appears increasingly likely that Deutsche Bank investors will be asked to post bail for Deutsche’s past crimes,” they said in note on Monday.

(Reporting by Kathrin Jones- Writing by Arno Schuetze- Editing by Jonathan Gould)

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