BERLIN / Bloomberg
Chancellor Angela Merkel’s government is partly to blame for market mistrust in Deutsche Bank AG because it spearheaded implementation of new liability rules for bondholders in a law passed last year, the lender’s Co-Chief Executive Officers John Cryan and Juergen Fitschen told the Frankfurter Allgemeine Zeitung (FAZ).
While the government has solved the problem of liability capital, it created other problems that only exist in Germany and that “makes us a special case internationally,” Cryan told the newspaper.
Fitschen said “national solo efforts” by the government that aren’t matched elsewhere don’t help.
Litigation issues are another reason why financial markets mistrust Deutsche Bank, with the greatest litigation risks stemming from the US, FAZ cited Cryan as saying.
Deutsche Bank will also carefully examine its set-up in Russia after transactions with Russian shares raised questions as to how effective the lender’s “systems and controls” are, Cryan said.
Both CEOs see no need to fundamentally challenge the business model of the institution, with Cryan saying “Deutsche Bank must first and foremost be anchored in Germany.” International capital market operations will remain a pillar of the bank and investment banking, including trade, is indispensable, Cryan said.
While Cryan doesn’t rule out a capital increase for the foreseeable future, he doesn’t deem it necessary from today’s perspective, FAZ said.
Deutsche Bank isn’t heavily involved in the US oil and gas business and is hardly taking any risks with high-yield corporate bonds any more, FAZ cited Cryan as saying.
Deutsche Bank AG is a German global banking and financial services company with its headquarters in the Deutsche Bank Twin Towers in Frankfurt.
It has more than 100,000 employees in over 70 countries, and has a large presence in various parts of Europe, the Americas, Asia-Pacific and the emerging markets.
In 2009, Deutsche Bank was the largest foreign exchange dealer in the world with a market share of nearly 21 percent. The company is a component of the Euro Stoxx 50 stock market index.
The bank offers key financial products and services to varied clients, some of whom include corporate and institutional bodies and also there is a long list of private and business clients, across the world.
Services include sales, trading, research and origination of debt and equity; mergers and acquisitions (M&A); risk management products, such as derivatives, corporate finance, wealth management, retail banking, fund management, and transaction banking.