Deutsche Bank CEO asked EU taxpayers for €150bn to recapitalise the bank, as Deutsche Bank showed 0.6% growth in Q3 profit. What is next for the bank?
Deutsche Bank CEO Asks for €150bn
Deutsche Bank has demanded the €150 billion fund from the EU taxpayers, as the German lender is currently facing financial troubles. According to German media, the Deutsche Bank’s Chief Economist, Folkerts-Landau, has stated:
“In Europe, the program does not have to be so big. With 150 billion euros, the European banks can be recapitalized. Strictly adhering to the rules would cause greater damage than suspending them.”
The news came in the wake of Deutsche Bank’s decision to set aside €1 billion in the lawsuit battle fund regarding the talks aimed at settling mortgage-securities investigation with the US officials. Moreover, the German largest lender stated that the attention around its talks with the DoJ had an “unsettling effect.”
The German media reports that David Folkerts-Landau stated that a €150 billion injection would be enough to recapitalize the bank. Mr. Folkerts-Landau has also mentioned: “Europe is seriously ill,” adding that the EU needs to consider amending the rules to avoid catastrophe.
Deutsche Bank is showing profits
The update came in the wake of the John Cryan’s warning of fast restructuring. It appears that the bank has published a two percent profit, despite its weakening position.
On the 27th of October, German banking group has issued the surprising Q3 results. The market analysts were anticipating the German lender to indicate a loss, yet the bank showed a €278 million net profit. The positive performance was mostly driven by the investment banking part of the Deutsche Bank, which generates the most amount of the bank’s profit in the US. Deutsche Bank shares climbed 0.6 percent Thursday after the official announcement.
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