Deutsche Bank Returns to Haunt Merkel in an Election Year
- German government moves swiftly to douse bailout talk
- Debate highlights chancellor’s tangled history with bank
Will Merkel Step in and Save Deutsche Bank?
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In April 2008, as the global financial crisis was brewing, Angela Merkel hosted a 60th birthday reception in her Berlin chancellery for Deutsche Bank’s then-chief executive Josef Ackermann. Eight years later, her government is doing its best to keep Germany’s biggest bank at arm’s length.
Chastened by a series of government clashes with Deutsche Bank, the lender’s financial woes are the last thing Merkel needs as she considers running for a fourth term. After a magazine article stirred speculation, Merkel’s spokesman moved swiftly to stem the notion that the lender might require state aid as the U.S. seeks a multibillion dollar fine, with negotiations opening at $14 billion.