Mubasher: Qatar is expected to pump new investment into Deutsche Bank AG in a bid to prop up the ailing German lender’s finances, sources familiar with the matter said.
The funds, whose size and timing are not clear, are to be provided by the GCC nation’s sovereign wealth fund, the Qatar Investment Authority, the sources told Bloomberg News.
It is worth noting that two other Qatari investment arms already own a stake in the Frankfurt-based bank.
The sources added that the parties are at an advanced stage of discussions, but no final agreement has been reached.
In an effort to fix Deutsche Bank on the back of the slump of its shares in 2018, the German government is studying ways to make it easier for the lender to merge with Commerzbank AG, the New York-based news agency previously reported.
The government is also weighing up other possibilities such as seeking fresh investment from existing or new shareholders.
Deutsche Bank will have a potential liability if it is fined by the US for those accusations of money laundering, Arjuna Mahendran, a former central bank of Sri Lanka governor and former chief investment officer at Emirates NBD Wealth Management, told Bloomberg News.
As the fine could not be quantified, the bank “may do both, get the Qataris to put in some equity and merge with Commerzbank to fill any holes created by having to pay the anticipated fine,” he explained.
