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Analysts lament Deutsche woes but play down bailout talk

Bailouts and bankruptcy of the German lender are unlikely, say observers, but the problems could still damage Europe’s banking system

Analysts lament Deutsche woes but play down bailout talk
Photo: iStockPhoto

The likelihood of Deutsche Bank needing a bailout by the German government is slim, according to banks analysts – but the alternative of “having a sick bank limping on” is also problematic for Europe’s financial system.

Deutsche's shares tanked after The Wall Street Journal reported on September 15 that the US Justice Department wanted the bank to pay $14 billion to settle a probe linked to the sale of mortgage securities in the run-up to the 2008 financial crisis.

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