Deutsche Bank's Cryan refutes state aid report, capital increase: Bild

[FRANKFURT] Deutsche Bank chief executive John Cryan on Wednesday personally refuted a report over the lender having sought the assistance of the German government in settling a US$14 billion US demand, which on Monday saw its shares drop to a record-low.

"At no point did I ask the chancellor for support. Neither did I suggest anything like that," Mr Cryan told German daily Bild in response to a report that said he had asked German Chancellor Angela Merkel for her support with a US$14 billion US demand to settle claims it missold mortgage-backed securities.

Such a request would be "out of the question for us," Mr Cryan said, adding that he could not understand how "anyone could claim that".

German magazine Focus reported on the weekend that Ms Merkel had met Mr Cryan over the summer and had indicated he could expect no help from Berlin in resolving the bank's dispute with the US Department of Justice.

Ms Merkel had also ruled out state aid to Deutsche Bank, the magazine said, citing government sources.

Following the report, Deutsche Bank shares on Monday dropped to a record-low of 10.62 euros, seeing the lender reject the claims, with a spokesman saying the bank would meet its challenges on its own.

Mr Cryan also ruled out the need for a capital increase in the interview with Bild, saying Germany's biggest bank had "fewer risks in the book than before" and was "comfortably equipped with free liquidity".

The lender's litany of legal troubles, of which the US$14 billion DoJ claim is only the latest, have spurred worries it may need to raise capital to staunch the damage.

The DoJ demand had caused "much concern," Mr Cryan told Bild. "Although it was clear from the beginning that we would not pay this sum," he said.

He said he expected "that the Department of Justice will treat us with the same fairness as American banks that have already agreed on a compromise." Asked about Britain's decision to leave the European Union 28-country bloc, Mr Cryan said the bank was looking into the possibility of relocating business to the European mainland and mainly to Frankfurt, but did not provide further detail.

Mr Cryan also said the bank's restructuring was progressing well and that the lender was "on target" to cut 9,000 jobs as part of the overhaul.

REUTERS