Monday, October 3, 2016

Gabriel: Deutsche Bank has made speculation gains to the business model – FAZ – Frankfurter Allgemeine Zeitung

Sigmar Gabriel in Berlin’s Tegel airport before the flight to Tehran

Federal Minister of Economics Sigmar Gabriel (SPD) has practiced sharp criticism of the German Bank, given the current problems of the institution. “I don’t know if I should laugh or cry, that the Bank, which has made the speculation gains to the business model, explained-now to the victims,” Gabriel said on Sunday evening on the flight to a visit to Tehran. He was referring to allegations from the Deutsche Bank, the company was the victim of speculators.

Gabriel made for the current crisis, the German Bank, however, past mistakes of the management. “The scenario is that thousands of people will lose their jobs. You now carry the responsibility for the madness that was operated by irresponsible managers", – said the Minister. On the question of possible state financial help, he said, his concern applies to so much of the Bank as to the loss of Jobs.

The consequences of low interest rates and the increasingly stringent rules by the Supervisory authorities weigh heavily on the business of the Bank. Recently, Deutsche Bank was due to a legal dispute in the United States under strong pressure. The American Ministry of justice requested $ 14 billion (€12.5 billion) due to transactions with rotten mortgage-backed securities – the Bank has set aside for legal disputes but only around 5.5 billion euros. The news of the exposure, triggered speculation about possible state aid, which were rejected by both the Bank as well as by the Federal government.

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Under the impact of the billion in exposure decreased the share price of the company on Friday, briefly for the first Time ever under the Ten Euro mark. Later, of course, however, strong, as it became known, that the penalty payment is likely to be significantly lower. The sum is to be set to 5.4 billion Dollar, according to the news Agency AFP learned from the matter in familiar circles.


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