Deutsche Bank shares hit record low on report Merkel won't help the troubled lender

Angela Merkel had categorically ruled out stepping in to help Deutsche Bank with its U.S. legal troubles in 2017, citing unidentified government officials. The article states that Merkel made her views clear in discussions with Deutsche Bank CEO John Cryan.

Shares of the bank have been hit hard this month after the U.S. Justice Department suggested the bank pay $14 billion to settle a number of investigations related to mortgage securities. The investigations refer to the way it sold these securities before the financial crash of 2008.
A German government spokesperson released a statement to reporters on Monday saying that there was no need to speculate about state aid for Deutsche Bank. Jorg Eigendorf, head of communications and senior group director at the bank.

The company has previously said that a settlement between $2 billion and $3 billion would be fair, as it had already paid $1.9 billion in 2013 to resolve similar claims.

Initial concerns over Deutsche Bank surfaced earlier in the year with investors detailing concerns over its exposure to the energy sector and a possible cash crunch.
U.S. banks have been busy rebuilding their balance sheets after the 2008 crisis but their European counterparts have been slow off the mark. Deutsche Bank came out fighting in February 2016 saying it had "sufficient" reserves to service its so-called tier 1 debts.