Min­is­ter slams ‘ir­re­spon­si­ble’ Deutsche Bank

The Myanmar Times - - International Business -

GER­MAN Econ­omy Min­is­ter Sig­mar Gabriel has lashed out at Deutsche Bank’s han­dling of its trou­bles, say­ing “ir­re­spon­si­ble” man­agers had put thou­sands of jobs at risk.

“I don’t know whether to laugh or cry that the bank, which turned spec­u­la­tion into a busi­ness model, is now call­ing it­self a vic­tim of it,” Mr Gabriel told re­porters, af­ter CEO John Cryan this week blamed spec­u­la­tors for push­ing the em­bat­tled lender’s share price to a record low. Speak­ing to re­porters on his way to Tehran for a trade visit, Mr Gabriel said Deutsche’s woes could be traced back to past mis­takes made by the man­age­ment.

“The sce­nario is that thou­sands of peo­ple will lose their jobs. They now have to bear the re­spon­si­bil­ity for the mad­ness car­ried out by ir­re­spon­si­ble man­agers,” said Mr Gabriel, who is also Ger­many’s vice chan­cel­lor.

Deutsche Bank has found it­self at the cen­tre of a storm ever since the US Depart­ment of Jus­tice last month de­manded an un­af­ford­able US$14 bil­lion fine over the bank’s role in the subprime mort­gage cri­sis.

Fears over Deutsche’s fi­nan­cial health and spec­u­la­tion that it might need a bailout sent its shares plum­met­ing this week.

Its stock re­cov­ered last week on a re­port that the bank was close to a set­tle­ment with US au­thor­i­ties to lower the fine to $5.4 bil­lion.

In a fur­ther boost to Deutsche’s morale, top ex­ec­u­tives from some of Ger­many’s largest firms, such as Siemens, Daim­ler and BASF, ral­lied be­hind the lender and said Mr Cryan still had their trust. –

Photo: AFP

Sig­mar Gabriel blames the man­age­ment for the bank’s woes.

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