Deutsche Bank says no need for Berlin's help in $14 billion U.S. dispute
By Kathrin Jones and Joseph Nasr
FRANKFURT/BERLIN (Reuters) - Deutsche Bank (DBKGn.DE: Quote) said on Monday it had no need for German government help with a $14 billion U.S. demand to settle claims it missold mortgage-backed securities, as its shares hit a record low.
German magazine Focus reported at the weekend that Chancellor Angela Merkel had met Deutsche Bank Chief Executive John Cryan over the summer and had indicated he could expect no help from Berlin in resolving the bank's dispute with the U.S. Department of Justice.
Merkel had also ruled out state aid to Deutsche Bank, the magazine said, citing government sources.
Germany's biggest lender responded on Monday by saying it did not require assistance from Berlin and had not requested it.
"John Cryan at no point asked the German Chancellor for the government to intervene in the U.S. Justice Department's mortgages case," a Deutsche Bank spokesman said, adding that the bank would meet its challenges on its own.
Deutsche Bank shares hit a record low of 10.62 euros on Monday and were 6 percent lower at 10.72 euros by 1140 GMT.
The lender's litany of legal troubles, of which the $14 billion DoJ claim is only the latest, have spurred worries it may need to raise capital to stanch the damage.
Those concerns have contributed to a 50 percent drop in its share price since the start of the year. But the bank spokesman said capital raising was not on the agenda. Continued...