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Cryan was
attending the International Monetary Fund and World Bank's
autumn meetings in Washington, raising hopes that he might
personally negotiate down the $14 billion fine the DoJ has
demanded.
"One had hoped that a quick agreement was possible," a German
trader said.
By 0818 GMT, Deutsche Bank shares had pared losses but were
still at the bottom of a flat German blue-chip index <.GDAXI>,
down 3 percent at 11.74 euros.
"They had a bit of a bounce up last week, but I would still
steer clear of Deutsche Bank," said Terry Torrison, managing
director at Monaco-based McLaren Securities.
"They were never going to sort out the U.S. issues that quickly,
and whatever happens, I still think they will need to have a
rights issue."
Deutsche Bank is expected to issue new shares, sell assets, or
both, once it knows the scale of the fine, to ensure that its
capital ratio remains within regulatory limits.
It is struggling to restore market confidence, which took a blow
when the $14 billion figure was leaked but which was already low
as investors questioned whether Cryan had a credible plan to
revamp the bank.
(Reporting by Patricia Uhlig and Sudip Kar-Gupta; Writing by
Georgina Prodhan; Editing by Maria Sheahan)
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