US MORTGAGE SETTLEMENT
Deutsche Bank chief rules out merger
The leading European bank paid a $7.2bn settlement with the US justice department over its sale and pooling of mortgage securities
Berlin — Deutsche Bank chairman Paul Achleitner ruled out a European merger or a state bail-out after the lender’s mortgage settlement with the US department of justice, the Frankfurter Allgemeine Sonntagszeitung newspaper reported. The bank last week announced a $7.2bn settlement with the US justice department over its sale and pooling of mortgage securities in the run-up to the 2008 financial crisis. "The management board in principle looks at everything that could help the business," Achleitner said in an interview published on Sunday. "At the moment, however, enthusiasm for a pan-European merger is muted as we have other priorities," he said, when asked why Deutsche does not merge with Italy’s UniCredit or another lender. Deutsche, which was trying to simplify its operations, would keep its investment banking operations and ensure they complied with political and regulatory rules, Achleitner said. Supervisors including Germany’s Bundesbank and the European Central Bank have call...
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