BERLIN, Sept 29 Germany will not grant any more
state aid for ailing banks, a senior lawmaker in Chancellor
Angela Merkel's conservative bloc said on Thursday, a day after
the government denied it was working on a rescue plan for
Deutsche Bank, its biggest lender.
Deutsche is disputing a fine of up to $14 billion
from the U.S. Department of Justice. Concern about the bank's
financial health sent its shares to a record low on Tuesday.
Referring to the state rescue of banks on the brink of
collapse after the 2008 global financial crisis, Hans
Michelbach, a financial expert in Bavaria's Christian Social
Union (CSU), told Deutschlandfunk radio: "I cannot imagine that
the state will repeat something like that."
The German finance ministry on Wednesday brushed off a
report that a rescue plan was being prepared in case Deutsche
was unable to raise capital to pay legal bills.
Michelbach, and head of the conservatives in the
parliamentary financial committee, also reiterated his criticism
of the European Central Bank's low interest rates policy and
bond buying programme after ECB President Mario Draghi came to
Berlin to address a group of lawmakers.
Draghi meets Merkel later on Thursday.
"The policy has failed," Michelbach said, noting that Draghi
had given no signal when and how the low interest rate policy
would come to an end. He said cheap money was stopping countries
from implementing reforms.
"We want, quite clearly, to end the low interest rate
phase," he said.
(Writing by Madeline Chambers; Editing by Louise Ireland)