BERLIN: Deutsche Bank has denied that it is seeking state aid from the German government amid a regulatory dispute with the US.
Germany’s largest lender has been ordered to pay $14bn (£10.8bn) by the US Department of Justice to settle allegations it mis-sold mortgage securities in the lead up to the 2008 financial crisis. The amount is close to Deutche’s total market value of $16bn and has raised questions about its future.
German magazine Focus claimed over the weekend that Chancellor Angela Merkel had ruled out a government rescue for Deutsche during a confidential meeting with the bank’s chief executive John Cryan. Shares in the lender closed down 7.2% in European trading at €10.53 on 26 September — the lowest level in decades. Its market value has shrunk by half this year amid falling revenues and profits.
“This question [of a government rescue] is not on our agenda,” Deutsche Bank chief spokesman Jorg Eigendorg was quoted as saying by the Financial Times newspaper.
“The question of a capital increase is currently not on the agenda, we comply with all regulatory requirements.”
