Mind The ‘Deutsche’ In Deutsche Bank

The economy minister is in big trouble with his countrymen for speaking ill of the bank.
Author:
Publish date:
Ralf Roletschek [CC BY-SA 4.0, GFDL or CC BY-SA 3.0], via Wikimedia Commons

via Wikimedia Commons

Germany’s bank may incompetent, borderline insolvent and a threat to the entire global economy, but it is Germany’s bank. And as such, it is not to be criticized. Or punished for its misdeeds. And as far as Germany’s right-leaning politicians are concerned, the left-leaning economy minister in the government they lead is pulling a 1918-style stab in the back, and the U.S. Justice Department is reviving the Treaty of Versailles.

"As German economy minister, your task is to promote Germany as a place to do business and not to bad-mouth individual market participants," he told the newspaper Handelsblatt….

Attacking the bank when it is in a period of consolidation is not clever but "cheap," conservative lawmaker Michael Fuchs told the Passauer Neue Presse. "The economy minister is abusing his office to do party politics," Fuchs said.

On Monday, the chairman of the German parliament's economics committee Peter Ramsauer gave an interview to Welt am Sonntag in which he called the $14 billion fine over Deutsche Bank's mortgage-backed securities business dating back to the financial crisis "extortionate" and said the fine "has the characteristics of an economic war."

Conservative lawmakers slam German economy minister over Deutsche remarks [Reuters]
Deutsche Bank’s Troubles Touch a Nationalist Nerve [Bloomberg]

Related