Minister slams ‘irresponsible’ Deutsche Bank
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. –
Sigmar Gabriel blames the management for the bank’s woes.