Inside the German Government’s Push to Fix Deutsche Bank

A week after Christian Sewing took charge at Deutsche Bank AG in April, Chancellor Angela Merkel’s newly appointed finance minister, Olaf Scholz, buttonholed the chief executive officer of Germany’s largest lender at an event in Berlin. The 15-minute exchange -- between canapes and ceremonial speeches in a Prussian palace at the German banking association’s annual reception -- marked the start of a rapprochement between Merkel’s government and the embattled financial giant, Bloomberg News reported. Since then, Sewing and other Deutsche Bank executives have had contact with Finance Ministry officials on average every two weeks, a noticeable change after years of chilly relations. The thaw stems from growing concerns by Berlin’s power players that more than 30 billion euros ($34 billion) in bank bailouts in the financial crisis weren’t enough to ensure the lender can weather renewed strain if the economy cools down. Read more

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