Germany's Merkel Keeps Mum on Possible Deutsche Bank State Aid
September 27 2016 - 8:47AM
Dow Jones News
***(changes hed for clarity)***
By Andrea Thomas
BERLIN--German Chancellor Angela Merkel sought to keep a low
profile on a public debate about possible help for Deutsche Bank
AG, a move that signals that the government seeks to end
speculation about possible state aid for the struggling lender.
"Deutsche Bank is one part of the German banking and financial
sector, and of course we wish all companies, even when they are
experiencing temporarily difficulties, to perform well," Ms. Merkel
told reporters. "Apart from this, I don't want to comment."
Her remarks came after she was asked whether she believes that
the government should come to the rescue of the bank following a
sharp drop in Deutsche Bank's share price and other recent
developments.
Concern about the lender's capital position ahead of an
anticipated legal settlement with the U.S. Justice Department led
to a 7.5% drop Monday in the bank's share price. The stock was last
trading down 3% at EUR10.23 ($11.51) around midday.
A report over the weekend in the German magazine Focus suggested
that Ms. Merkel has ruled out extending state aid to Deutsche Bank
before the German national election in September 2017. The report,
citing unnamed government officials, led a spokesman for Ms. Merkel
to tell reporters on Monday that there was "no need for such
speculation."
Write to Andrea Thomas at
andrea.thomas@wsj.commailto:andrea.thomas@wsj.com
(END) Dow Jones Newswires
September 27, 2016 08:32 ET (12:32 GMT)
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