BERLIN: Leaders of some of Germany’s largest firms have rallied to defend Deutsche Bank, after a week of market turmoil in which the lender’s shares hit record lows on fears it will be crippled by a $14bn (£10.5bn) penalty from US authorities.
Speaking to the Frankfurter Allgemeine Sonntagszeitung, over the weekend, executives from BASF, Daimler and Siemens said they are backing the bank. Joe Kaeser, chief executive of Siemens, said the bank’s management “has the right goals and has our full confidence”. While Nikolaus von Bomhard, the chief executive of reinsurance giant Munich Re, said he saw no need to “reduce our business volume” with Deutsche Bank.
“We stand with Deutsche Bank. German industry needs a Deutsche Bank to accompany us out into the world,” added BASF chairman Juergen Hambrecht. Deutsche Bank has been told to pay up to $14bn by the US Department of Justice (DOJ) to settle allegations it mis-sold mortgage securities in the lead up to the 2008 financial crisis.
