German Chancellor Angela Merkel refuses to help Deutsche Bank. (Photo : Getty Images)
The rising crisis of Deutsche Bank is going to be addressed by China, according to financial analysts. The bank's looming crisis was caused by the imposition of the U.S. Department of Justice's $14 billion fine.
Chancellor Merkel and finance minister Wolfgang Schauble said that there will be no state-sponsored bank bailouts when the Eurozone crisis hit the region.
The German government then formulated new European rules that require creditors to outlay funds before seeking government intervention.
"State aid won't happen," said Thomas Oppermann, floor leader of the ruling Social Democrats. "It's now, first of all, up to the bank to solve the problems."
Martin Jager, a spokesperson for the finance ministry, noted, "The German government is not preparing a rescue plan, and there is no reason for such speculations."
Hans Michelbach, head of the conservative parliamentary finance committee, said that the party will not register any support to the bank in crisis.
He said, "I cannot imagine that the state will repeat something like that."
The head was referring to the state bailout in 2008 when the banks were on a brink of collapse.
Deutsche was once one of Europe's most successful financial institutions in Europe. It has faced a series of lawsuits that often trace back to the boom years before the crash. Its litigation expense since 2012 has already hit more than $13.5 billion.
However, Merkel was also hit by criticism from other German members of parliament. Sahra Wagenknecht, a member of the opposition far-left Linke party, said that the government put "a ticking time bomb in the lap of the taxpayer."
With the resistance of the German government to help Deutsche, China intends to be at the forefront to establish relations with the prominent bank especially in the time of Germany's political transition.
