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2/1/2019, 9:21 AM (Source: TeleTrader)
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Deutsche Bank CEO: No state pressure for merger

Deutsche Bank AG's chief executive Christian Sewing, who took over in April, denied on Friday that the cabinet of Chancellor Angela Merkel is pushing Germany's largest lender into integration with Commerzbank AG, smaller but also troubled rival. Speaking to N-tv, he claimed he doesn't feel any pressure from the government. "I have to say that we are pleased that we have a Ministry of Finance that really cares about Germany as a financial center – it is worrying because the banking industry is enormously important, especially for the German economy," the CEO stated.

Reports have emerged that decision makers in Berlin are making contingencies including preparations for a merger and an unnamed regulator revealed the plan exists and that it was run by Vice Chancellor and Minister of Finance Olaf Scholz from the Social Democratic Party. Sewing said last week that he is oriented toward a rebound in profitability and that mergers are "beyond" what he is contemplating.

Sueddeutsche Zeitung learned supervisors from the European Central Bank participate in the considerations but that they say the new entity must be profitable, including a possible capital raise, and that shareholders must greenlight the deal.

Breaking the News / IT