DEUTSCHE DISASTER PLAN? Merkel ‘preparing’ emergency bailout for leading German bank
ANGELA Merkel’s government is preparing an emergency plan for Deutsche Bank should the lender need to be rescued amid a raft of expected lawsuits and fines, according to reports in German newspapers.
By LANA CLEMENTS
Express.co.uk
Wed, Sep 28, 2016
The bank’s chief executive John Cryan today said that state support “out of the question for us”.
But high high-ranking officials in Berlin, Brussels and Frankfurt are working on a contingency plan, should the bank come to a point where it can’t raise needed funds from markets, according to Die Zeit.
It comes after US authorities asked Deutsche to pay a $14billion fine (£10.5bn) over a mortgage scandal from the financial crisis.
The sum is almost as much as the lender’s entire value.
The reported rescue plan would see Deutsche sell parts of its business to other financial institutions.
And in an extreme emergency the government WOULD directly intervene, according to Die Zeit.
However, the Federal Ministry of Finance has denied the report of the German paper and said it is incorrect and that the government is not preparing any rescue plans.
Government spokesperson Steffen Seibert said: “There is no reason for these speculations.”
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