German politicians concerned over Deutsche Bank's financial woes

Berlin

DEUTSCHE Bank AG's finances, weakened by low profitability and mounting legal costs, are raising concern among German politicians after the US sought US$14 billion to settle claims related to the sale of mortgage-backed securities.

At a closed session of Social Democratic finance lawmakers this week, Deutsche Bank's woes came up alongside a debate over Basel financial rules, according to two people familiar with the matter. Participants discussed the US fine and the financial reserves at Deutsche Bank's disposal if it had to cover the full amount, according to the sources, who asked not to be identified because the meeting on Tuesday was private.