HAMBURG 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)
Trending On Reuters
With the crucial GDP data scheduled to be announced along with key corporate results, volatility is expected to prevail in the upcoming week. Disappointment on these fronts may push the Nifty down to the 7,200-7,500 range. Once we witness stability and consolidation, investors should increase their exposure, says Ambareesh Baliga. Full article