Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

German government prepare Deutsche Bank rescue plan: Die Zeit

Published 09/28/2016, 05:52 AM
Updated 09/28/2016, 06:00 AM
© Reuters. The headquarters of Germany's Deutsche Bank is photographed early evening in Frankfurt

© Reuters. The headquarters of Germany's Deutsche Bank is photographed early evening in Frankfurt

FRANKFURT (Reuters) - The German government and financial authorities are preparing a rescue plan for Deutsche Bank (DE:DBKGn) in case the lender would be unable to raise capital itself to pay for costly litigation, German weekly Die Zeit reported.

According to the draft plan, Deutsche Bank would be enabled to sell assets to other lenders at prices that would ease the strain on the lender and not put an additional burden on the bank, the paper said.

In an extreme emergency, the German government would even offer to take a direct stake of 25 percent, the paper added without saying where it got the information.

A Deutsche Bank spokesman referred to an interview Chief Executive John Cryan gave German daily Bild on Wednesday and denied the report.

"At no point did I ask the chancellor for support. Neither did I suggest anything like that," had told Cryan Bild in response to a different report that said he had asked German Chancellor Angela Merkel for her support with a $14 billion U.S. demand to settle claims it missold mortgage-backed securities.

Such a request would be "out of the question for us," Cryan said, adding that he could not understand how "anyone could claim that."

© Reuters. The headquarters of Germany's Deutsche Bank is photographed early evening in Frankfurt

The German government is still hoping Deutsche Bank will not need state support and only scenarios for a potential rescue are being discussed so far, Die Zeit reported.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.