Bundeswirtschaftsminister and Vice-Chancellor Sigmar Gabriel (SPD) has strongly criticised the German Bank. “I don’t know if I should laugh or be angry that the Bank, which has raised the speculation gains, declared now to be the victim of speculators,” he said on the flight to Tehran.
Gabriel was responding to the Statement by Deutsche Bank chief John Cryan, in a letter to employees. Therein Cryan called on the workforce to maintain, in spite of the market turbulence alone. “Our Bank has become the subject of intense speculation,” wrote Cryan. The market forces on the way, wanted to weaken the confidence in Germany’s largest money house.
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The German Bank is after US authorities billion penalty threatened to fall in even heavier turbulence. In the Federal government, there are fears that the largest private financial institution in the country and former figurehead of the German financial industry in an existence-threatening crisis could come. “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 Minister Gabriel.
understanding of the action of the Americans
Previously expressed by other representatives of the German government its great concern about the state of the German Bank. “We see apart from the possible penalties of the U.S. government and the current problems of the Institute is not a viable business model for the future,” it said in the environment by the Federal Minister of Finance Wolfgang Schäuble (CDU).
The German Bank-was due to a legal dispute in the United States under strong pressure. The U.S. Department of justice requested $ 14 billion (€12.5 billion) due to transactions with rotten mortgage-backed securities, however, it is assumed that a significantly lower penalty. The news of the US demand triggered speculation about possible state aid, which were rejected by both the Bank as well as by the Federal government.
In Parts of the Federal government, there is an understanding for the approach of the Americans. “Deutsche Bank like Commerzbank operates in a grey zone, and probably in the non-legal space,” – said in government circles. Accordingly, the reaction of the US authorities is understandable. A harder approach than in the case of U.S. banks, it could not recognize. This applies at least for the case that the fines are in the four to five billion euros, as in the prospect.
Under the impact of the billion in exposure decreased the share price of Deutsche Bank 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.