Germany's leading blue-chip companies are reportedly lining up to take a €5 billion stake in Deutsche Bank if the ailing Frankfurt lender needs to be propped up.
The plan comes as economic minister Sigmar Gabriel admitted that Germany's only bank of international significance faces a "huge challenge" to restructure and return to stability.
Fears that the bank might struggle to pay a multibillion US fine for misselling securities have sparked weeks of stock market turbulence – and speculation that Berlin might be forced to provide a state bailout.
One way to avoid such an intervention would be to reactivate Deutschland AG (Germany Inc), the old network of mutual cross-holdings of German blue-chip companies that thrived in postwar West Germany.
A week ago, Daimler and other German companies professed their trust in Deutsche in the Sunday newspapers. Now the Handelsblatt business daily reports that they are ready to commit €5 billion should the bank require fresh capital to cover its legal bills.
"Private market support for Deutsche Bank is definitely better than using public money," an unnamed source familiar with the talks told Handelsblatt.
Silent on risks
As Deutsche’s leading managers continue talks with US authorities, Mr Gabriel, vice-chancellor in Angela Merkel’s government, declined to comment on the risks facing the bank – or the possibility of a state bailout. “I have no time for speculation over things that aren’t looming.”
He did say that Berlin has an interest that “Deutsche Bank once again becomes a stable credit institution that is successful nationally and internationally”.
Mr Gabriel, who is leader of the Social Democratic Party, came in for criticism earlier this week after he mocked the bank for claiming to be the victim of speculators, “when it had turned speculation into a business model”.
On Friday, the minister said it was telling that the Deutsche board had announced plans to change its business model and shed some 4,000 jobs this year alone: “It shows that Deutsche Bank wants to react to this risk itself.”
Germany's finance minister ,Wolfgang Schäuble, who was in Washington at an International Monetary Fund meeting, declined to comment on the future of Deutsche Bank.
One of the bank’s biggest shareholders, the Emirate of Qatar, which has a 10 per cent stake, is reportedly standing behind the institution.
“Qatar believes that things will go well for the bank,” a source told Germany’s ARD public broadcaster.
On Friday, the Financial Times reported that the bank may float its asset management division in order to replenish its capital base.
