Deutsche Bank shares recover on support from clients, rivals
By Arno Schuetze and Kathrin Jones
FRANKFURT (Reuters) - Shares in Deutsche Bank (DBKGn.DE: Quote) rose on Tuesday after major clients and even rivals voiced support for the lender, fearing contagion after concern over its future last week sent the stock to a record low.
Germany's largest bank has been engulfed by a crisis of confidence after the U.S. Department of Justice (DOJ) last month demanded up to $14 billion to settle claims that Deutsche missold U.S. mortgage-backed securities before the financial crisis.
The German bank is trying to reach a settlement before next month's U.S. presidential election.
Chief Executive John Cryan and finance head Marcus Schenck are currently travelling to the United States to meet clients and staff and to attend the annual conference of the International Monetary Fund.
A person close to the bank said that it would be a surprise if Cryan did not take the chance to meet regulators over Deutsche's legal cases.
A media report late on Friday that Deutsche and the DOJ were close to agreeing a much lower penalty of $5.4 billion lifted the stock 6 percent, but that report remains unconfirmed.
Deutsche's Frankfurt-listed shares closed up another 1.5 percent on Tuesday. They spiked higher in U.S. trade after German markets newsletter Platow Brief said the bank is hoping for a settlement of $4-5 billion by the end of October.
Deutsche Bank is considering scrapping bonuses and raising fresh capital, Platow Brief added, without citing sources. Continued...