Stournaras says sees no problem with Deutsche Bank other than US issue


TAGS: Banking, Finance

Germany's Deutsche Bank is financially sound and doesn't have any problem other than the US demanding it pay up to $14 billion in fines for miss-selling mortgage-backed securities, ECB Governing Council member Yannis Stournaras said on Tuesday.

“It is a large investment bank which has passed stress tests,” Stournaras, who is also the Governor of the Central Bank of Greece, told Greek lawmakers. “Apart from this issue, it doesn't have any other problem.”

“If it pays the entire fine (amount) it will have problems with its capital, but from what I am aware it is in talks with US authorities for it to be reduced,” Stournaras told a parliamentary committee in response to a question.

Deutsche, which employs around 100,000 people, has been in turmoil since news of the fine became public last month.