Berlin - Deutsche Bank chief Josef Ackermann said Sunday
that Germany's biggest bank has no plans to take advantage of a
government rescue plan for its troubled financial sector.
'Under the current circumstances we will not participate, because
we are strong,' said Ackermann, whose bank last week reported a third
quarter profit in spite of the current economic turmoil.
The bailout package, approved by parliament last month, involves
500 billion euros (650 billion dollars) in debt guarantees and funds
for injections of capital and purchases of illiquid assets.
On Saturday, German Chancellor Angela Merkel appealed to banks to
take up the government's offer as quickly as possible.
Ackermann welcomed Berlin's quick response to the financial
crisis, but said Deutsche Bank had made money during a difficult
period and did not need the help of a state-backed programme.
'We need a stable financial system. And those banks that are
weaker should be strengthened as quickly as possible,' he said in a
television interview.
Two banks have already applied for government help and two more
were reported to be considering asking for assistance to help them
through the current upheavals.
Compared with several of its peers, Deutsche Bank has escaped
relatively unscathed from the global credit crunch and the financial
market crisis.
Last week the bank said its net profit in the three months to the
end of September came in at 414 million euros after taking advantage
of new accounting rules that enabled it to reduce its writedowns.
A German state bank BayernLB, which reportedly needs 6.4 billion
euros in new funds, has asked for help, as has Hypo Real Estate
(HRE), which nearly collapsed in September.
Germany's first big casualty of the current crisis, HRE won 50
billion euros in guarantees from the government and German banks in
early October. Last week it applied for a cash injection of 15
billion euros from the new federal fund.
Media reports said two other state banks, WestLB and HSH Nordbank,
were considering applying for funds from the government bailout
scheme.
USA
Your Talkback on this Story