Politicians in Germany are accusing the United States that the country is waging an economic war against Deutsche Bank (NYSE:DB), one of the largest banks and the biggest lender in Germany. There are growing concerns in this European country over the future of the bank.
Chairman of the economics committee in the German parliament, Peter Ramsauer has issued a statement, saying that the move against the bank “has the characteristics of an economic war”. A member of the European parliament, Markus Ferber, too said much the same thing. Markus said that the size and timing of this seems like a “tit for tat response” by the United States.
Recently, the European Commission had asked Apple (NASDAQ:AAPL) to pay 13 billion euros or $14.6 billion to Ireland over unpaid taxes for more than 20 years. The United States and Apple, both protested, saying that this was unfair, and it could impact investments in Europe.
German Businesses Too Are Supporting Deutsche Bank
In another development, many of the top industrialists in the country have also stood with the bank, saying that Deutsche Bank is very important to the German economy. They said they were confident that Chief Executive John Cryan will be able to turn things around soon.
The bank under a lot of pressure last week, since the U.S. Department of Justice, asked them to pay $14 billion as the settlement for misleading mortgage securities. This sparked fears about the capital levels of the bank. German Chancellor, Angela Merkel said she doesn’t want to get involved in the Deutsche-US feud.
The stock of Deutsche Bank fell to their lowest point since 1983. However, the stock went up on Friday after the news that the bank may have to pay much less – just $5.4 billion as the settlement.
Deutsche Bank, Important for the German Economy
The head of German carmaker Daimler, Dieter Zetsche, said we need strong banks for the German economy. Johannes Teyssen from Eon while talking to reporters commented that German exports will suffer if Deutsche Bank falls. Peter Terium from the power maker RWE also expressed his concerns. He says, “It is important for us to have a global player like Deutsche Bank”. Joe Kaeser from Siemens commented, “Deutsche’s management has our complete confidence”.
Meanwhile, Deutsche Bank (NYSE:DB) along with two others are facing trial in Milan over alleged financial crimes. This is a fresh blow to the bank.