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German economy minister Sigmar Gabriel criticises Deutsche Bank for irresponsible behaviour

German Economy Minister Sigmar Gabriel Has Heavily Criticised Deutsche Bank's Managers As Irresponsible And Lambasted The German Financial Major For Handling Of Its Troubles, Saying Managers Had Put Thousands Of Jobs At Risk.

News Nation Bureau | Edited By : Gautam Lalotra | Updated on: 03 Oct 2016, 10:01:15 AM
Deutsche Bank - File Photo (Getty)

New Delhi:

German Economy Minister Sigmar Gabriel has heavily criticized Deutsche Bank's managers as "irresponsible" and lambasted the German financial major for handling of its troubles, saying managers had put thousands of jobs at risk. 

"I don't know whether to laugh or cry that the bank, which turned speculation into a business model, is now calling itself a victim of it," Gabriel told reporters yesterday, after CEO John Cryan this week blamed speculators for pushing the embattled lender's share price to a record low.

Speaking to reporters on his way to Tehran for a trade visit, Gabriel said Deutsche's woes could be traced back to past mistakes made by the management.

"The scenario is that thousands of people will lose their jobs. They now have to bear the responsibility for the madness carried out by irresponsible managers," said Gabriel, who is also Germany's vice-chancellor and leader of the Social Democrats, the junior partner in the coalition government. 

Deutsche Bank has found itself at the centre of a storm ever since the US Department of Justice last month demanded an unaffordable USD 14 billion fine over the bank's role in the subprime mortgage crisis.

Fears over Deutsche's financial health and speculation that it might need a bailout sent its shares plummeting this week. Its stock recovered on Friday on a report that the bank was close to a settlement with US authorities to lower the fine to USD 5.4 billion. 

In a further boost to Deutsche's morale, top executives from some of Germany's largest firms, such as Siemens, Daimler and BASF, rallied behind the lender yesterday and said Cryan still had their trust.

Cryan already announced some 9,000 job cuts last year -- nearly a tenth of the bank's workforce -- as part of a massive overhaul to improve the Deutsche's profitability in an environment of low interest rates and sluggish global growth. The German government has strongly denied preparing any rescue plans for Deutsche, while the bank itself has said it does not need any state aid.

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First Published : 03 Oct 2016, 09:34:00 AM