Germany denies Deutsche Bank rescue plans
Deutsche is facing a $14bn (€12.5bn) fine from the US Department of Justice and concerns over its funding pushed its shares to a record low on Tuesday.
Weekly Die Zeit had reported that the German government and financial authorities were working on possible steps to enable Deutsche to sell assets to other lenders at prices that would ease the strain on the lender.
The German government would even offer to take a direct stake of 25% in an extreme emergency, the paper said.
“This report is wrong. The German government is not preparing any rescue plan, there is no reason to speculate on such plans,” the finance ministry said.
Deutsche Bank shares, which have lost around half their value this year, were up 2.28% yesterday evening.
The crashing share price prompted unusual takeover speculation with Yigit Bulut, a chief adviser to Turkish president Recep Tayyip Erdogan suggesting Turkey use a new wealth fund or a group of state-owned banks to buy Deutsche.
The suggestion may ignite political opposition in Germany, where Deutsche Bank has long been viewed as a national champion and has played an integral role in Germany’s economy.
Separately, the bank said it sold its British insurance business Abbey Life to Phoenix in a $1.2bn deal.
