Thursday, October 6, 2016

Berlin speaks, quietly, with Washington about the Deutsche Bank – the Observer

Are going "conversations discrete" between the chancellery of Angela Merkel and u.s. authorities about the Deutsche Bank, the news agency Reuters. The conversations are related to the judicial process that the Department of Justice has in progress, against the German bank, and that you may pass by the settlement of multimillion dollar. The goal of the conversations is, according to the news, speed up the process and delete this question mark over the future of the bank.

The court case is in connection with the sale irregular of financial products that were linked to the financial collapse of 2008. The shares of Deutsche Bank have come under strong pressure, especially since it was reported that the u.s. authorities wanted a value in the order of 14 billion dollars to shut down this process. Last Friday, it was reported, however, that would be close to an agreement by which Deutsche Bank would pay (only) a little more than 5 billion euros.

This news of Friday has not yet been confirmed, and now, Reuters is no mention of values but, yes, in the informal meetings for the process to be resolved as soon as possible. Sources close to the process quoted by news agency say that the "encounters ” at all levels" can help the Deutsche Bank to gain time to solve other problems, such as the operational restructuring in progress.

The minister of Finance of Germany, Wolfgang Schäuble, is in Washington DC this week, on the occasion of the annual meetings of the IMF. But, according to Reuters, there are no provisions for meetings of Schäuble with representatives from the Department of Justice. There may be, however, parallel meetings: "Is it possible to have meetings. Not has, obligatorily, be the minister," said one of the sources cited by Reuters.

The goal of the chancellery from Merkel is, also, speed up a solution to avoid that the theme will continue in the order of the day in the approach to elections in 2017, writes the Reuters. The Deutsche Bank is the largest German bank and employs around 100 thousand people, but the government has maintained a public position of non-intervention.


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