Germany’s CEO’s Standing Behind Deutsche Bank (NYSE:DB)
The CEO’s of several German blue-chip companies have discussed Deutsche Bank’s (NYSE:DB) problems and are ready to offer a capital injection if needed to shore up Germany’s largest lender, newspaper Handelsblatt reported Thursday.
The German newspaper said that under an emergency plan the participating companies would purchase Deutsche Bank stock to boost its reserves.
The capital injection that has been discussed is in the low single-digit billions of Euros, the paper said, adding that Berlin welcomed the private-sector intervention.
“Market support for Deutsche Bank is in any case better than the use of state money,” Handelsblatt quoted a source familiar with the discussions as saying.
Deutsche Bank declined to comment on the report.
The Handelsblatt report did not name any of the companies that have discussed the possibility of supporting Deutsche Bank in this way.
German Finance Minister Wolfgang Schaeuble, who is on a visit to the United States for International Monetary Fund (IMF) meetings in Washington this week, said earlier in the day that had no comment on whether the German government would be ready to rescue Deutsche Bank.
The big German lender has been engulfed in crisis since news emerged last month of a US DOJ demand for a $14-B settlement over the sale of toxic mortgage bonds. The bank is fighting the fine and the settlement is likely to be about $5.4-B.
|NYSE:DB||13.34||6 October 2016||-0.25||13.66||13.68||13.27||5,941,459|
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