Deutsche Bank Gets Additional Investment From Qatar
Deutsche Bank is securing additional investment from Qatar as the German lender seeks to bolster its financial position, according to various media sources.
Qatar Investment Authority (QIA ) is in final talks to invest in Deutsche reported «Business Day», citing people with knowledge of the matter. While the discussions are at an advanced stage, no final agreement has been reached, said the sources. Deutsche Bank has declined to comment.
Since last month, Qatar's sovereign wealth fund has been in talks with Germany's financial regulator, BaFin, about raising its stake in the German lender, according to newspaper Handelsblatt. Currently, two other Qatari investment vehicles, controlled by members of the royal family and other prominent politicians, already own a stake.
Restructuring Ongoing
Deutsche Bank has been restructuring itself following the aftermath of the global financial crisis. It now faces US scrutiny as it questions the lender’s steps to combat money-laundering amid reports that its US unit may have been a channel for money-laundering activities.
«There’s a potential liability ahead in case the bank is fined by the regulators in the US for those accusations of money laundering,» said Arjuna Mahendran, a former central bank of Sri Lanka governor.
QIA, which manages $320bn, is known for its big-name investments. Its chairman Sheikh Mohammed bin Abdulrahman al-Thani suggested in an interview at the World Economic Forum in Davos that Deutsche Bank is among the major German companies the sovereign wealth fund is talking to about potential stake purchases.
