Deutsche Bank CEO 'rules out' govt support

Updated: 2016-09-29 07:13

(China Daily)

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Deutsche Bank AG Chief Executive Officer John Cryan said he has not sought help from German Chancellor Angela Merkel 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.