German government, JP Morgan deny report on Deutsche Bank

The German government dismissed a report that will This kind of had privately raised concerns about Deutsche Bank, while J.P. Morgan denied This kind of was interested in a stake in Germany’s biggest lender.

Shares in Deutsche had jumped by as much as 6 percent on Friday after WirtschaftsWoche (WiWo) magazine said J.P. Morgan along with Industrial along with Commercial Bank of China might invest within the bank.

By 10:55 GMT, its shares had retraced some of those gains nevertheless were still up 4.8 percent at 9.98 euros .

The weekly publication had also said Chancellor Angela Merkel met Axel Weber, the former Bundesbank head who will be at This kind of point chairman of Swiss bank UBS, to sound out his views on Deutsche.

“We were astonished to learn about the report about a supposed conversation between the chancellor along with Mr Weber,” government spokesman Steffen Seibert told a news conference. “This kind of will be purely speculative along with cannot be confirmed.”

The government had full trust within the bank’s management, he added.

A spokeswoman for J.P. Morgan said: “We are denying the story, This kind of will be not true.”

UBS along with Deutsche Bank declined to comment along with ICBC could not immediately be reached for comment.

Shares in Germany’s flagship bank touched record lows below 9 euros in June on investor scepticism about the appointment of Christian Sewing as CEO along with his strategy to refocus on its European core while slashing global investment banking.

Some investors have said they doubt whether Sewing, 48, can return Deutsche to profitability after the bank racked up three years of losses under his predecessor, John Cryan.

He has been hobbled by downgrades to Deutsche’s credit ratings, while the bank’s U.S. subsidiary has failed a Federal Reserve test of its ability to withstand a financial crisis.

Despite Deutsche’s woes, its franchise was attracting interest as London’s standing as a financial center will be threatened by Britain’s looming exit by the European Union, investment bankers told WirtschaftsWoche.

Bulge-bracket banks are looking to strengthen their presence in Frankfurt, as the German financial capital along with seat of the European Central Bank gains importance after Brexit.

Deutsche’s shares have fallen by nearly two fifths This kind of year, reducing its market capitalization to below 20 billion euros ($23.4 billion). that will compares to J.P. Morgan’s $353 billion along with ICBC’s $274 billion.

Leave a Reply

Your email address will not be published. Required fields are marked *


14 − fourteen =