Germany 'Prepares Deutsche Bank Rescue'

Date: 29 September 2016 - 00:48

News ID: ۳۱۷۴۸

BERLIN (BBC) - The German government and financial authorities are working on a rescue plan for Deutsche Bank in case it cannot pay fines in the U.S., according to Die Zeit newspaper.
Germany's biggest lender is facing a $14bn (£10.8bn; €12.5bn) bill for mis-selling mortgage-backed bonds before the financial crisis of 2008.
In the worst-case scenario, the government would even take a 25% stake in the bank, according to the article.
Deutsche Bank has denied the report.
In a statement, the German finance ministry stressed: "This report is false. The federal government is preparing no rescue plans. There is no reason for such speculation. The bank has said that clearly."
Die Zeit wrote that "despite earlier denials", the rescue plans were being prepared and would come into force if the bank needed additional capital to pay the fine and could not raise the money from the markets.
The record fine was imposed by the U.S .Department of Justice earlier this month and is nearly triple the amount Deutsche had put aside to cover the payout.