POST Online Media Lite Edition


Germany suddenly interested in Deutsche Bank's fate

Staff Writer |
The German government is in talks with U.S. authorities to help Deutsche Bank secure a swift settlement over the sale of toxic mortgage bonds.

Article continues below

Until now, Reuters reports, German officials have played down their role in the standoff, saying it is up to Deutsche to work out a deal with the U.S. Department of Justice (DOJ), which is demanding up to $14 billion to settle claims the lender mis-sold mortgage-backed securities before the financial crisis.

But government officials in Berlin, speaking on condition of anonymity, told Reuters they hoped to facilitate a quick deal that would buy Deutsche Bank time to regain its footing.

One senior government official told Reuters there was "contact at all levels" between German and American officials.

Another source said Finance Minister Wolfgang Schaeuble was not planning to meet DOJ officials during a trip to Washington this week for International Monetary Fund meetings, but added: "You can hold talks. It doesn't have to be the minister."

What to read next

Deutsche Bank seals deal with Land Securities for new London HQ
Deutsche Bank to invest $10 million in Florida, employ 350
Phoenix Group completes acquisition of Abbey Life business from Deutsche Bank