FRANKFURT Oct 5 Union Investment, one of
Deutsche Bank's top investors, backed the German
flagship lender on Wednesday, saying that a sell-off in its
shares was overdone.
"To us, Deutsche Bank is not a bank in crisis," Frank
Engels, head of fixed income at Union, said late on Wednesday.
Germany's largest lender has been engulfed by a crisis of
confidence after the U.S. Justice Department said it should pay
up to $14 billion to settle claims that it missold U.S.
mortgage-backed securities before the financial crisis.
Deutsche Bank's stock is down around 8 percent since the
news emerged last month, shrinking its market value to 16.7
billion euros ($18.7 billion).
Union Investment's Engels said he did not see any risk that
Deutsche Bank may need to be rescued by the German government.
"There is an enormous liquidity buffer," he said, adding
that Deutsche Bank also had access to central bank funds.
Berlin has denied reports that it is working on a rescue
plan for the lender.
But questions over the health of Germany's largest lender
loomed over the start of the IMF and World Bank annual meetings
in Washington on Wednesday, dominating a news conference on
risks to global financial stability.
The question to focus on now, Union's Engels said, is what
Deutsche Bank's strategy will look like in the future,
considering low interest rates, and how it would finance a
possible settlement and future capital requirements.
($1 = 0.8928 euros)
(Reporting by Hakan Ersen; Writing by Maria Sheahan; Editing by