Friday, October 28, 2016

‘Europe is SERIOUSLY ILL’ Deutsche Bank demands £133BILLION slush fund from EU taxpayers

TROUBLED Deutsche Bank has demanded the EU set aside a huge slush fund to save the continent's financial system from collapse.The news comes after British CEO John Cryan today warned of rapid restructuring as the bank posted a two per cent profit amid its weakening position. According to German media, David Folkerts-Landau, Deutsche Bank's Chief Economist, said a €150bn (£133bn) pot of cash could be enough to recapitalise the banks. In a bizarre interview Mr Folkerts-Landau said "Europe is seriously ill" and demanded the EU look at bending new rules to avoid disaster. He told "In Europe the programme does not have to be so big. "With 150 billion euros, the European banks can be recapitalised."Strictly adhering to the rules would cause greater damage than suspending them. "Europe is seriously ill and has to deal with the existing problems extremely fast, otherwise a crash will be imminent." The news comes as Germany's largest lender set aside €1billion euros in a litigation battle fund this morning as it gets set to face legal action around the world after the International Monetary Fund slammed it this summer. The bank said attention around negotiations concerning the DOJ settlement had an 'unsettling effect.'Analysts say that Deutsche Bank's British CEO John Cryan has "inherited a dogs' breakfast of a bank" as it appears the bank is making a slush fund to counter lawsuits from angry investors. The firm is facing 7,000 class action suits from investors says Michael Hewson of CMC Markets. Deutsche Bank is blaming the US department of justice following the announcement it is to be fined for its troubles. Failing to recognise that there was a reason for the outcome of the investigation the Chief Financial Officer tries to allay fears. Deutsche Bank CFO Marcus Schenck said: "The last two weeks in September, post the unfortunate leak from the DOJ (Department of Justice), caused a lot of speculation, which took its toll. "That continued for a week in October, but the situation has stabilised... Prime Broking has certainly suffered. "Developments largely followed the same as liquidity reserves... but has since stabilised." The bank has indicated that it could be March before it settles its fine with the US department of Justice. The CEO Mr Cryan told investors: "We remain keen to settle this and other open matters with US authorities. We must reduce litigation overhand by settling those matters, remains top priority. "We need to restructure faster and higher intensity. "The macro economic outlook has worsened in Europe and the negative interest rate outlook looks unlikely to change. "We are acutely aware of these changes. "We need to restructure and modernise the bank faster. "We are taking steps now on additional cost saving and taking measures for better planning."

No comments: