Bank
Inconceivable that we will help Deutsche Bank with taxpayers ‘money,” says the German top-politician.
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Deutsche Bank, long one of the world’s largest banks, has over half its market value so far this year. In the second have values of close to nok 130 billion disappeared.
on Monday dropped the stock close to eight per cent on the Frankfurt stock exchange to its lowest level in several decades. So far, Tuesday’s the exchange rate for breath, and is up 1.6 percent.
the Background is increased concern that the bank must retrieve the money, says The Wall Street Journal on Tuesday. This is enhanced by a potentially gigantforlik with the u.s. government.
Rejected claims
14 billion dollars, or 115 billion. It is the price the u.s. justice department has offered Deutche Bank for a settlement in an ongoing case regarding the illegal sale of rotten mortgage loans, so-called subprimelån or toxic assets, in the forefront of the financial crisis in 2008/09.
Deutsche Bank believes, however, the amount is too high, and have so far rejected the claim.
“Deutsche has no intentions to enter into any settlement of anything near this amount”, said a statement from the bank before the weekend.
Although the alleged requirement of 14 billion dollars from the u.s. government is thus, analysts believe that even half will make the cabbage on the bank’s already-pressed kapitalreserver, according to the WSJ. Meanwhile, make the Deutsche Bank alt to cut costs and sell off non-core business.
“Fundamentally solid”
A spokesperson for Deutsche Bank said on Monday that the bank is “fundamentally solid” and that the questions relating to whether the bank can make up for himself is “pure speculation”, according to The Wall Street Journal.
to make the situation more difficult, German chancellor Angela Merkel has been a leading critic of that taxpayers should get skadeskutte banks to the rescue.
at the same time notified the German magazine Focus on Monday that Merkel is reportedly to have refused to help German banks before the elections in Germany in september next year, according to the related sources.
- Unthinkable
This got a spokesperson for Merkel on the court, which stated that it was not “the basis for such speculation” , according to the WSJ.
On the other hand, take a seniorrepresentant for Merkel’s party, the Christian Democrats, the blade from his mouth on Tuesday.
- It is inconceivable that we will help Deutsche Bank with taxpayers money. It would lead to loud protests from the people. The political establishment would lose credibility if the authorities intervened, said Hans Michelbach to Bloomberg on Tuesday.
Waiting bot
In the market, it was expected that Deutsche would be imposed a fine of around five billion dollars, as the u.s. Goldman Sachs paid in settlement in a similar case earlier in the year. Deutsche has also set aside a good five billion dollars to cover fines and legal expenses in the united STATES, the EUROPEAN union and other places.
Deutsche now hope to negotiate down the price, such as Goldman Sachs succeeded with from an original claim of 14 billion dollars.
Deutsche has a market value of around 16 billion dollars, and in the market fryker that the bank simply can go over.
Fear has also root in the american presidential election campaigns can take a low settlement. Both candidates want to appear to be tough at the talks between iran and this may affect forhandlingsklimaet negative for Deutsche.
Bank of America and JPMorgan entered into in 2014 and in 2013 settlement of around 11 billion dollars each for råsalg of subprimelån, the currently highest to date in the united STATES.
the Greatest systemic risk
Deutsche’ll also swipe from The international monetary fund (IMF) that describes the German bank, which “apparently the biggest net contributor to the systemic risk” among all the world’s storbanker.
Deutsche is struggling heavily financially, and stroke on the u.s. central bank’s stress test for the second time in a row in years. Only two of the 33 banks failed the test.
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