Deutsche Bank tells staff no bailout needed for U.S. settlement: source
FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) sought to reassure staff about its financial strength on Friday, in the wake of a $7.2 billion settlement with the U.S. Department of Justice (DoJ) over its sale and pooling of toxic mortgage securities.
Germany's flagship lender said in a memo to employees that it did not need a government bailout to fund the agreement, according to a person familiar with the memo, which was posted on Deutsche Bank's intranet site on Friday.
"We anticipated that the credit market will welcome the sentiment. We anticipate paying coupons on all of our instruments on time and in full," the memo said, according to the source.
A person close to Deutsche Bank earlier said it also did not plan a capital increase to cover the settlement.
As part of the agreement with the U.S. DoJ, Deutsche Bank will pay a civil monetary penalty of $3.1 billion and provide $4.1 billion in consumer relief, such as loan forgiveness.
The lender said earlier it expected to record a pretax charge of about $1.17 billion in its fourth quarter because of the civil monetary penalty.
(Reporting by Alexander Huebner and Edward Taylor; Writing by Maria Sheahan; Editing by Mark Potter)
