FRANKFURT Oct 14 Aides to German
Chancellor Angela Merkel told lawmakers last week the state
would not take a stake in Deutsche Bank if it were to
issue new stock, the Wall Street Journal said on Friday, citing
a person who attended the briefing.
Deutsche has been engulfed in crisis since news emerged last
month of a U.S. Department of Justice demand for $14 billion to
settle allegations that it mis-sold mortgage securities before
the global financial crisis. It is fighting the claim but might
have to turn to investors for more money depending on the size
of any eventual settlement.
In a closed-door briefing with a small group of lawmakers
last week aides to the Chancellor and senior Finance Ministry
officials said it was "inconceivable for the state to take a
stake in Deutsche Bank," the newspaper said.
"We have a different bank resolution system than in 2009 and
this must apply to us in Germany too," the government officials
said according to the person.
Deutsche Bank declined to comment. No one at the finance
ministry was immediately available for comment.
(Reporting by Harro ten Wolde; Additional reporting by Holger
Hansen in Berlin; Editing by Greg Mahlich)