Deutsche BankCEO ‘rules out’ govt sup­port

China Daily (USA) - - BUSINESS - By BLOOMBERG

Deutsche Bank AG Chief Ex­ec­u­tive Of­fi­cer John Cryan said he has not sought help from Ger­man Chan­cel­lor An­ge­laMerkel amid in­vestor con­cern that his firm may need more cap­i­tal, ac­cord­ing to a Ger­man news­pa­per re­port.

Rais­ing cap­i­tal “is cur­rently not an is­sue”, and ac­cept­ing gov­ern­ment sup­port is “out of the ques­tion for us”, Ger­man news­pa­per Bild quoted Cryan as say­ing in an in­ter­view. “At no point did I ask” Merkel “for sup­port. Nei­ther did I sug­gest any­thing like that.”

Shares of Ger­many’s largest bank have been pushed lower, drop­ping to a record this week, af­ter the US Jus­tice De­part­ment ear­lier this month re­quested $14 bil­lion to set­tle an in­ves­ti­ga­tion into res­i­den­tial mort­gage-backed se­cu­ri­ties.

The claim sparked in­vestor con­cerns that the lender will have to raise cap­i­tal to weather mount­ing le­gal costs at a time when Cryan re­struc­tures busi­nesses and elim­i­nates thou­sands of jobs.

The com­pany has lost about 53 per­cent of its mar­ket value this year.

Ger­many’s Fo­cus mag­a­zine re­ported ear­lier this month that the gov­ern­ment had ruled out any back­ing for the com­pany.

Deutsche Bank has said it ex­pects to whit­tle down the set­tle­ment amount, just as other Wall Street banks did, with talks only in the early stages.

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