"German Chancellor Angela Merkel cannot afford to bail out Deutsche Bank given the hard line Berlin has taken against state aid in other European nations and the risk of a political backlash at home, German media wrote on Saturday."
The government denied a newspaper report on Wednesday that it was working on a rescue plan for Germany's biggest bank
"Of course Chancellor Merkel doesn't want to give Deutsche Bank any state aid," it wrote in a front-page editorial. "She cannot afford it from the point of view of foreign policy because Berlin is taking a hard line in theItalian bank rescue."
ZH: Oct. 2, 2016
Deutsche Bank Charged by Italy For Market Manipulation
"the charges deal another blow to Deutsche Bank, which is seeking to reassure investors and clients that it will be able to withstand pending U.S. penalties over the bank’s sale of mortgage-backed securities and its dealings with some Russian clients."
ZH: Oct. 2, 2016
Friday's Reports of DOJ Settlement Were Bogus
In other words, not only was the $5.6 billion "agreed upon" number, as "reported" by Twitter and then AFP, bogus, but the actual negotiations have not yet even begun.
Got short covering?
"The situation conjures dark images of the 2008 financial crisis — with the important caveat that the overall risks are nowhere near as great now as they were then."
