Deutsche Bank says it will never need state aid

HAMBURG Fri Nov 9, 2012 1:05am IST

Stocks

   

HAMBURG (Reuters) - Deutsche Bank (DBKGn.DE), on a international regulator's list of four banks that would pose the greatest risk to the global financial system if they collapsed, will never need to be bailed out, its co-chief executive said.

"We are not dangerous and we never were because we didn't need to ask the state for help and we will not do that in future either," Juergen Fitschen said at an economic conference in Hamburg.

He was reacting to the Financial Stability Board's decision last week to place Deutsche, along with three other banks, in its highest risk category, requiring them to hold extra capital to absorb potential losses.

Deutsche had declined to comment on the move by regulators last week, but on Thursday Fitschen expressed his annoyance at subsequent media reports that branded Germany's biggest lender the world's most dangerous bank.

"That is more than irresponsible - that is pure stupidity," he said. "Nobody claims that we are the most dangerous bank in the world. What's behind this is all quite simple - the fact is if Deutsche Bank runs into trouble, it is of great significance for many markets."

Deutsche, along with Citigroup Inc (C.N), HSBC (HSBA.L) and JPMorgan Chase & Co (JPM.N), will be required to hold an extra 2.5 percent of common equity as a percentage of risk-weighted assets on top of a 7 percent minimum being phased in from January.

"We are systemically relevant even in America, the biggest of all of the financial markets. It would be sad if we had not achieved this status after so many years of trying," Fitschen said.

(Reporting by Michelle Martin; Editing by David Goodman)

Reuters Showcase

GDP Growth

GDP Growth

India revises up 2013/14 GDP growth to 6.9 percent.  Full Article 

Adani Restructuring

Adani Restructuring

Adani hives off power, ports businesses to boost growth.  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

ICICI Results

ICICI Results

ICICI sets quarterly record profit as Q3 net rises 14 pct  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage