European Commission Vice President Valdis Dombrovskis said on Wednesday the noise centered around Deutsche Bank's current affairs is somewhat exaggerated, and the European financial system is more robust than before the global 2008 crisis.
Dombrovskis, who is also a prime minster of Latvia, said the financial system is in better shape in part from the results of a recent stress test by the European Banking Authority.
Fear circulated in the European Banking community last week after a report said Deutsche Bank has still yet to reach a settlement with the U.S. Department of Justice.
There are concerns the German lender cannot afford the Justice Department's proposed $14 billion bill and would need a rescue from the German government. But Dombrovskis said the settlement results remain to be seen.
"We cannot comment [on] U.S. authorities decisions. And, as we know, negotiations between Deutsche [Bank] and U.S. authorities are still ongoing and it remains to be seen what amount of settlement it will be," he said.
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