The German government and Deutsche Bank were at pains Wednesday to quash speculation of a rescue plan for the troubled lender, in an effort to reassure investors spooked by a potentially massive US fine. The denials came after Deutsche’s share price sank to a record low this week on reports that Germany’s biggest bank had asked Berlin for help after US authorities demanded an unaffordable $14-billion fine over the subprime mortgage crisis.
State aid “is not on the table”, chief executive John Cryan told Germany’s biggest-selling newspaper Bild. But investors were further rattled when news weekly Die Zeit on Wednesday reported that German and EU officials were working on an emergency plan for Deutsche “if the worst comes to the worst”. READ MORE