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Business

Deutsche Bank says no need for Berlin's help

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Business

Deutsche Bank says no need for Berlin's help

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COMING UP:Deutsche Bank says no need for Berlin's help

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00:00:02
>> Deutsche Bank insisting it doesn't need a government bailout to help it settle a dispute with the U.S. Justice Department. Germany's biggest lender facing $14 billion in penalties for claims it missold mortgage-backed securities. Reuters' correspondent, Arno Schuetze, is in Frankfurt.>> Deutsche Bank's market capitalization is 14 billion euros as of today.
00:00:25
And that should give you a rough figure of how significant the fine is or the potential settlement cost is.>> Shares in the group falling to their lowest level since the mid-1980s on Monday. That's after German magazine, Focus, reported that the Chancellor had told the bank's CEO to expect no help in resolving the dispute and no state aid.
00:00:46
Deutsche in responding, saying that it hadn't requested any. The lender's litany of legal troubles has spurred worries it may need to raise capital, that contributing to a 50% drop in the share price since the start of the year.>> Investors are concerned about Deutsche's outlook, not only because it is having trouble generating revenues in the current market environment with loan demand weak and trading volumes down, but also because there are a number of other legal issues that Deutsche Bank still has to resolve.
00:01:21
The DOJ probe is just one of four major things it has up its sleeve right now. The others are dodgy equities deals in Russia, manipulation and the violations of sanctions.>> A bank spokesman telling Reuters a capital hike is not on the agenda. In a separate TV interview, he stressed Deutsche Bank has a strong credit portfolio and liquidity.
00:01:48
The government declining to comment on whether there had been any contact with the bank.