German lender Deutsche Bank aims to reassure investors Monday, telling CNBC that its chief executive hadn’t asked for government assistance in its negotiations with the U.S. Department of Justice.
“At no point of time (CEO) John Cryan has asked the chancellor for support in the negotiations with the Department of Justice and he doesn’t intend to do that. He is very strong on that position,” Jorg Eigendorf, head of communications and senior group director at Deutsche Bank, told CNBC Monday.
His comments come after Deutsche Bank shares saw renewed selling in stock markets after a report seemed to rule out any state-aid for the embattled German lender. Focus, a German weekly news magazine published in Munich, reported on Friday that Chancellor Angela Merkel had categorically ruled out stepping in to help Deutsche Bank with its U.S. legal troubles in 2017, citing unidentified government officials. The article states that Merkel made her views clear in discussions with Deutsche Bank CEO John Cryan.
Shares of the troubled lender slipped 6 percent on Monday and hit an all-time low. Eigendorf admitted that the share price is low but said that the company was more focused on its “credit story” which he said was “very strong.”
“It is fundamentally strong. A lot of those in the market understand and if they analyze the basics and the fundamentals that we are quite strong. Look at our credit story, evaluate risk very low, our credit portfolio very strong, our liquidity position very strong, very comfortable and the third quarter is almost over and I can tell you today that we are fine and very comfortable here,” he added.
Shares of the bank have been hit hard this month after the U.S. Justice Department suggested the bank pay $14 billion to settle a number of investigations related to mortgage securities. The investigations refer to the way it sold these securities before the financial crash of 2008.
Initial concerns over Deutsche Bank surfaced earlier in the year with investors detailing concerns over its exposure to the energy sector and a possible cash crunch.
A German government spokesperson released a statement to reporters on Monday saying that there was no need to speculate about state aid for Deutsche Bank. Eigendorf iterated that the reports of state aid were “just speculation” and said that the bank strongly intends to solve its problems, or its challenges, by itself.
“We don’t think about anything else, we do our homework here,” he added.
Source: CNBC
