Germany Working On Deutsche Bank Rescue Plan As Lender Sells Unit To Shore Up Liquidity

Update: In an emailed statement, the German finance ministry told Bloomberg that the report on Deutsche Bank by German weekly Die Zeit ‘is incorrect” adding that “the federal government isn’t preparing any rescue plans. There are no grounds for such speculation.’
GERMAN FINANCE MINISTRY DENIES DIE ZEIT REPORT ON DEUTSCHE BANK GERMAN GOVERNMENT ISN’T WORKING ON BANK RESCUE PLAN: MINISTRY Only two more denials until it is unofficially confirmed.
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It’s all about Deutsche Bank this morning again, where after last night’s vigorous denial by CEO John Cryan, who told Bild that the troubled German lender is not seeking a government bailout and that it’s balance sheet is solid, earlier this morning Germany’s Zeit reported that the German government is working on a contingency plan for Deutsche Bank. The German outlet writes that possible scenarios apply in case Deutsche Bank AG needed capital injection to cover litigation costs and include the option of German government taking a stake.
Contingency plan envisages possible sales of Deutsche Bank units, with the option of state guarantees to back the transactions if needed. One worst-case scenario involving the government taking a 25% stake would apply only in extreme emergency. All options are contingency planning and German govt hopes Deutsche Bank won’t need any state aid.

This post was published at Zero Hedge on Sep 28, 2016.