German government tells lawmakers it would not take a stake in Deutsche Bank: WSJ
- Wall Street dips as telecoms slump; AmEx surges
- Microsoft (MSFT) Tops Q1 EPS by 8c
- AMD (AMD) Posts Q3 Operating EPS of 3c; Sees Q4 Revenue Down Sequentially
- AT&T (T) Said to Discuss Idea of Takeover in Time Warner (TWX) Meetings
- Alkermes plc (ALKS) Announces Third ALKS 5461 Phase 3 Met Primary Endpoint in MDD
A logo is pictured on the Deutsche Bank building in Geneva, Switzerland, October 11, 2016. REUTERS/Denis Balibouse
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
FRANKFURT (Reuters) - Aides to German Chancellor Angela Merkel told lawmakers last week the state would not take a stake in Deutsche Bank
Deutsche has been engulfed in crisis since news emerged last month of a U.S. Department of Justice demand for $14 billion to settle allegations that it mis-sold mortgage securities before the global financial crisis. It is fighting the claim but might have to turn to investors for more money depending on the size of any eventual settlement.
In a closed-door briefing with a small group of lawmakers last week aides to the Chancellor and senior Finance Ministry officials said it was "inconceivable for the state to take a stake in Deutsche Bank," the newspaper said.
"We have a different bank resolution system than in 2009 and this must apply to us in Germany too," the government officials said according to the person.
Deutsche Bank and the finance ministry declined to comment.
The German government has repeatedly said state help for Deutsche Bank is not on the table, but sources said that behind the scenes the government was looking into options for the country's biggest lender.
Deutsche Bank's finance chief told staff representatives last month that job cuts at the bank could be double that planned, a step that could remove 10,000 further employees, a person with direct knowledge of the matter told Reuters.
(Reporting by Harro ten Wolde; Additional reporting by Holger Hansen in Berlin; Editing by Greg Mahlich and Susan Thomas)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Qatar, Abu Dhabi, Chinese Investor Said Open to Deutsche Bank (DB) Stake - Manager Mag.
- Long-time Arizona sheriff Arpaio trails in re-election bid: poll
- Activists to rally two years after Chicago teen's killing