Deutsche Bank seeking help from Wall Street
(4 October 2016 – Germany) Deutsche Bank is in informal talks with several Wall Street securities firms to explore options including raising capital should mounting legal bills require it, reports have indicated.
Senior advisers at top Wall Street firms are talking to the German bank’s representatives about ideas including a share sale and asset disposals, Bloomberg has reported, citing undisclosed sources familiar with the matter.
The banks are offering to help underwrite a stock sale to raise about €5 billion (A$7.4 billion), the maximum amount in discounted shares Deutsche Bank can sell without needing shareholder approval.
Deutsche is fighting a fine of up to US$14 billion (A$18.5 billion) from the U.S. Department of Justice following investigations into the bank's handling of mortgage-backed securities that contributed to the 2008 global financial crisis.
Further, reports from German publications suggest that chief executives of several domestic blue-chip companies have discussed Deutsche Bank's problems and are ready to offer a capital injection if needed to shore up the bank.
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