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Business

Germany weighs up supporting Deutsche Bank

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Business

Germany weighs up supporting Deutsche Bank

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COMING UP:Germany weighs up supporting Deutsche Bank

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Transcript

00:00:00
>> Germany's largest lender Deutsche Bank, has been reeling since it emerged last month, that the US Department of Justice is demanding $14 billion in damages linked to claims that Deutsche Bank mis-sold mortgage-backed securities in the run-up to global financial crisis. I'm Noah Barkin, special correspondent for Europe at Reuters in Berlin.
00:00:22
The DOJ demands, have unsettled investors in Deutsche Bank, sending it's shares to their lowest level in over 30 years and sparking speculation denied by both the bank and the German government that Berlin may have to come to the rescue. This comes at the worse possible time for German Chancellor Angela Merkel.
00:00:44
She is under severe political pressure for her refugee policy. She faces a federal election in a years time. Any attempt to bail out or come to the rescue of Deutsche Bank would be seized upon by other German parties in the run-up to the vote. It would also undermine Germany's credibility in Europe.
00:01:06
So, we can expect the government to do everything in it's power to avoid intervening and supporting Deutsche Bank. German officials that we've talked to have said, they are dead set against Deutsche Bank being taken over by another European bank. They say, European mergers are fine as long as the headquarters doesn't end up in Madrid, Amsterdam or Paris.
00:01:35
We're gonna see over the next few months whether Germany may have to suck up its pride and make some compromises on some of these hard-line stances.