Tuesday, October 4, 2016

Concern for Germany’s biggest money home: The German Bank is running out of time – daily mirror

John Cryan, chief of the German Bank, must hurry. Long he will be able to neither customers nor shareholders hold out. You reply to all the request. What’s next for the German Bank? How much is the penalty for dubious mortgage falls to shops in the USA? The Institute is in need of fresh capital and, if so, where does it come from? Need help at the end of the state? There are too many open questions may be, the Cryan are still no answers to give. And the longer this period of uncertainty lasts, the bigger the fear is, the house could not solve his problems, in fact, alone.

The criticism of the German Bank now comes from all sides. At the weekend it was Federal Economics Minister Sigmar Gabriel (SPD), the terms of the money the house violently. “I didn’t know whether to laugh or cry, that the Bank, which has made the speculation gains to the business model, explained-now the victim of speculators,” said Gabriel on a flight to Tehran. He was referring to the news that hedge funds have pulled back in the USA, already a part of their orders to the Deutsche Bank – what is the share of the Institute can at times to a historic low point had to fall. Gabriel was worried about the future of the German Bank: “I’m Worried about the people that are employed there.” The scenario is that thousands could lose their jobs. “You now carry the responsibility for the madness that was operated by irresponsible managers,” said Gabriel.

The American authorities are demanding $ 14 billion penalty

phrases like this – and from the mouth of the Minister of economy – to increase the already enormous pressure on the managers of the German Bank. Everything now depends on whether you manage to press the penalty in the United States. The American authorities are demanding $ 14 billion of the German Bank, because it has been involved in the financial crisis, on a windy mortgage transactions.

How far is the Institute with the negotiations, there are contradictory reports. The Agency wants to know AFP from the matter of familiar circles, the penalties should be set to 5.4 billion dollars (4.8 billion euros). That would be a significant reduction compared to the previous requirement, but still more, as Deutsche Bank has factored in. The Institute should have paid for the mortgage dispute, an Insider has revealed that only 2.5 to three billion euros, set aside. Officially was able to confirm the AFP message, but so far none. Especially since the “Wall Street Journal” reported something else. Namely, that the representatives of the Bank and the U.S. government could move forward in their negotiations, while quite. That, however, there is still no proposal was Mature enough to be able to high-level decision-makers are presented. Also, the “Wall Street Journal” refers to the process of familiar people. The “Frankfurter Allgemeine Sonntagszeitung” (FAS), meanwhile, have learned that the top management of Deutsche Bank will travel in the coming days of negotiations in the United States. This, in turn, could indicate that negotiations are coming slowly to an end.

The presidential elections could be the delay in negotiations

it is Clear that time is of the essence. The US authorities will not in the next four weeks with the representatives of the Deutsche Bank agreement, should the negotiations is still very much lengthier. Finally, the Americans already choose on 8. November a new President. After that then needs to be formed once a new government – which is likely to mean for the negotiations with the German Bank in a significant delay, and the new uncertainty about their output.

For the Institute would be a potentially months-long impasse fatal. The share price is in the basement – also on Monday, he gave in to the US stock exchanges. Besides there are already rumors about a possible state aid. The Federal Ministry of Finance was already urged, a report of the “time” to reject, according to which the government has been working on rescue plans of the Bank. The majority of the Germans would in any case be against state aid for the German Bank. 69% rejected the idea of financial assistance from the state, reported the magazine “Focus” on the weekend. Only 24 per cent were in favour.

business representatives have committed themselves to the Deutsche Bank

in Contrast, Cryan of the economy got back. “German industry needs a German Bank that accompanies us into the world,” said the Chairman of the Supervisory Board of BASF, Jürgen Hambrecht, the “FAS”. RWE chief Peter Terium stressed the need for a global Bank for the German economy. Similar to Daimler, said CEO Dieter Zetsche.


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