BERLIN Dec 31 Deutsche Bank chairman
Paul Achleitner has ruled out a pan-European merger or a state
bailout in the wake of the lender's mortgage settlement with the
U.S. Department of Justice, Frankfurter Allgemeine
Germany's biggest lender last week announced a $7.2 billion
settlement with the U.S. Department of Justice over its sale and
pooling of toxic mortgage securities in the run-up to the 2008
"At the moment the fantasy for a pan-European merger is
muted as we have other priorities," Achleitner told the weekly
newspaper in an interview published on Saturday.
Supervisors including Germany's Bundesbank and the European
Central Bank have called for more consolidation in the banking
sector, saying there are still too many banks despite a steady
fall in the number of branches since the 2008 financial crisis.
Separately, Achleitner said that government aid for players
in the financial industry would not become an issue in Germany.
"No one in Germany needs to worry about rescuing banks,"
said Achleitner, who is seeking another five-year term as
Deutsche Bank chairman.
By contrast, the Italian government has earmarked 20 billion
euros to bolster its ailing lenders. The Bank of Italy said on
Thursday that total costs for the state bailout of Banca Monte
dei Paschi di Siena would total about 6.6 billion
(Reporting by Andreas Cremer; Editing by Gareth Jones)