Deutsche Bank 'to weigh capital options with lenders'

Deutsche Bank AG is holding informal talks with securities firms to explore options including raising capital should mounting legal bills require it, according to people familiar with the discussions.


Senior advisers at top Wall Street firms are speaking to representatives of the German lender about ideas including a share sale and asset disposals, said the people, who asked not to be identified because the plans are private. A spokeswoman for Deutsche Bank declined to comment.


The banks are offering to help underwrite a stock sale to raise about 5 billion euros ($5.6 billion) should the bank need it, the people said. That is about the maximum amount in discounted shares Deutsche Bank can sell without needing shareholder approval, if the firms decide to raise capital, the people said. The firm could also go to shareholders to request approval for more funds.


Deutsche Bank is deliberating whether to sell the shares once it reaches a settlement with the US Justice Department of a probe tied to residential mortgage-backed securities, said the people. No final decisions have been made and the bank could decide against a capital increase, they said. The result will largely depend on the size of the fine, which Bloomberg Intelligence estimates may range from $4 billion to $8 billion based on settlements of similar investigations of other banks, the people said.


JPMorgan Chase & Co, Goldman Sachs Group Inc, Morgan Stanley and Bank of America Corp are the top-ranked advisers on share sales globally this year, according to data compiled by Bloomberg.


The article transsshipment from China Daily