(Refiled to correct day of week in first paragraph)
FRANKFURT Oct 4 Shares in Deutsche Bank
rose 2.5 percent on Tuesday, benefiting from the
support of its major clients and even rivals, rebounding after
concern over its future last week sent the stock to a record
German business leaders from companies including BASF
, Daimler, E.ON, RWE
and Siemens lined up to defend the bank in the German
press over the weekend, which included a public holiday on
JP Morgan Chief Executive Jamie Dimon said late on
Monday that he saw no reason that Deutsche Bank should not get
over its problems.
While Dimon's remarks lent some calm to the market they
showed his concerns about a potential contagion in the banking
industry, market analyst Heino Ruland at Ruland Research said.
Analysts at HSBC said that despite Deutsche Bank's
operational shortcomings fears over the bank's solvency were
"Deutsche Bank should be well-equipped to deal with this
short-term lack of confidence as it has: strong liquidity, solid
funding and 60 percent level 3 assets to tangible equity," HSBC
said in a note to clients.
Deutsche Bank shares fell last week as hopes faded of a
swift deal with U.S. authorities over a multi-billion dollar
The German lender is throwing its energies into reaching a
settlement before next month's U.S. presidential election, with
the Department of Justice demanding a fine of up to $14 billion
for mis-selling mortgage-backed securities.
A media report late on Friday that Deutsche and the DOJ
were close to agreeing a much lower penalty of $5.4 billion
lifted the stock 6 percent, but that report remained
(Reporting by Arno Schuetze, editing by Louise Heavens)