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Deutsche Bank sees no need for state support in DOJ penalty talks


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Deutsche Bank sees no need for state support in DOJ penalty talks

Deutsche BankAG said it has not asked the German government for support as itcontests a $14 billion penalty sought by the U.S. Department of Justice for missold MBSin the U.S., CNBC reported.

German magazine Focusreported Sept. 23 that German Chancellor Angela Merkel had ruled out any kindof government support for Deutsche Bank in 2017 as it tries to resolve itslegal issues. Deutsche Bank shares dropped about 7.5% Sept. 26 to close at€10.55 apiece, the lowest price in decades, TheWall Street Journal noted Sept. 27.

"At no point of time [CEO] John Cryan has asked thechancellor for support in the negotiations with the Department of Justice andhe doesn't intend to do that," Deutsche Bank's head of communications,Jörg Eigendorf, told CNBC on Sept. 26. "He's very strong on that position."

Despite Merkel's and Deutsche Bank's insistence that stateaid would not be provided for Deutsche Bank, Andreas Utermann, chief investmentofficer at AllianzGroup unit Allianz Global Investors AG, expressed confidence thatthe German government would in fact rescue Deutsche Bank if its financialtroubles were to reach a tipping point, Bloomberg News reported Sept. 26.

"I don't buy at all what's coming out of Germany interms of Germany not wanting to step in ultimately if Deutsche Bank was reallyin trouble," Utermann told Bloomberg Television. "It's too importantfor the German economy."

Deutsche Bank has said it has no to settle the charges"anywhere near the number cited" by the DOJ.