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German government tells lawmakers it would not take a stake in Deutsche Bank -WSJ

Reuters  |  FRANKFURT 

FRANKFURT (Reuters) - Aides to German Chancellor Angela Merkel told lawmakers last week the state would not take a stake in if it were to issue new stock, the Journal said on Friday, citing a person who attended the briefing.

has been engulfed in crisis since news emerged last month of a U.S. Department of Justice demand for $14 billion to settle allegations that it mis-sold mortgage securities before the global financial crisis. It is fighting the claim but might have to turn to investors for more money depending on the size of any eventual settlement.

In a closed-door briefing with a small group of lawmakers last week aides to the Chancellor and senior Finance Ministry officials said it was "inconceivable for the state to take a stake in Bank," the newspaper said.

"We have a different resolution system than in 2009 and this must apply to us in too," the government officials said according to the person.

and the finance ministry declined to comment.

The German government has repeatedly said state help for is not on the table, but sources said that behind the scenes the government was looking into options for the country's biggest lender.

Bank's finance chief told staff representatives last month that job cuts at the could be double that planned, a step that could remove 10,000 further employees, a person with direct knowledge of the matter told Reuters.

(Reporting by Harro ten Wolde; Additional reporting by Holger Hansen in Berlin; Editing by Greg Mahlich and Susan Thomas)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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German government tells lawmakers it would not take a stake in Deutsche Bank -WSJ

FRANKFURT (Reuters) - Aides to German Chancellor Angela Merkel told lawmakers last week the state would not take a stake in Deutsche Bank if it were to issue new stock, the Wall Street Journal said on Friday, citing a person who attended the briefing.

FRANKFURT (Reuters) - Aides to German Chancellor Angela Merkel told lawmakers last week the state would not take a stake in if it were to issue new stock, the Journal said on Friday, citing a person who attended the briefing.

has been engulfed in crisis since news emerged last month of a U.S. Department of Justice demand for $14 billion to settle allegations that it mis-sold mortgage securities before the global financial crisis. It is fighting the claim but might have to turn to investors for more money depending on the size of any eventual settlement.

In a closed-door briefing with a small group of lawmakers last week aides to the Chancellor and senior Finance Ministry officials said it was "inconceivable for the state to take a stake in Bank," the newspaper said.

"We have a different resolution system than in 2009 and this must apply to us in too," the government officials said according to the person.

and the finance ministry declined to comment.

The German government has repeatedly said state help for is not on the table, but sources said that behind the scenes the government was looking into options for the country's biggest lender.

Bank's finance chief told staff representatives last month that job cuts at the could be double that planned, a step that could remove 10,000 further employees, a person with direct knowledge of the matter told Reuters.

(Reporting by Harro ten Wolde; Additional reporting by Holger Hansen in Berlin; Editing by Greg Mahlich and Susan Thomas)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
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German government tells lawmakers it would not take a stake in Deutsche Bank -WSJ

FRANKFURT (Reuters) - Aides to German Chancellor Angela Merkel told lawmakers last week the state would not take a stake in if it were to issue new stock, the Journal said on Friday, citing a person who attended the briefing.

has been engulfed in crisis since news emerged last month of a U.S. Department of Justice demand for $14 billion to settle allegations that it mis-sold mortgage securities before the global financial crisis. It is fighting the claim but might have to turn to investors for more money depending on the size of any eventual settlement.

In a closed-door briefing with a small group of lawmakers last week aides to the Chancellor and senior Finance Ministry officials said it was "inconceivable for the state to take a stake in Bank," the newspaper said.

"We have a different resolution system than in 2009 and this must apply to us in too," the government officials said according to the person.

and the finance ministry declined to comment.

The German government has repeatedly said state help for is not on the table, but sources said that behind the scenes the government was looking into options for the country's biggest lender.

Bank's finance chief told staff representatives last month that job cuts at the could be double that planned, a step that could remove 10,000 further employees, a person with direct knowledge of the matter told Reuters.

(Reporting by Harro ten Wolde; Additional reporting by Holger Hansen in Berlin; Editing by Greg Mahlich and Susan Thomas)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22

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