Merkel won't bail out Deutsche: report

German Chancellor Angela Merkel has nixed any bail out for Deutsche Bank prior to the national election next September, Focus magazine reported, citing unidentified government officials.

The German leader has also ruled out helping the bank’s with its legal imbroglio with the US Justice Department, which is seeking  $14 billion in sanctions against the bank’s mortgage-backed securities business, the magazine said.

Deutsche’s shares are down 5.5% in pre-market trading in the US on the report.

The similarities between Deutsche and Lehman Bros. keep coming up. Lehman was forced into bankruptcy before Washington got into picking winners in 2008, now Deutsche is being brought to its knees as its stock price will open at an all-time low of $12 a share.

I’m not alone in seeing the similarities, European bourses are down more than 1.5% on the news that Germany’s largest bank is on its own.



2 thoughts on “Merkel won't bail out Deutsche: report

  1. Pingback: Deutsche Bank’s pan-European bail out | GRAY'S ECONOMY

  2. Pingback: Cryan has to know when to Fuld ’em | GRAY'S ECONOMY

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.