Ackermann welcomes eurozone deal

Written by The Financial Times | Updated: Oct 28 2011, 08:08am hrs
By Chris Bryant in Frankfurt

Josef Ackermann, chief executive of Deutsche Bank and chairman of the Institute of International Finance, a global association of banks and finance houses, described the three-part deal to solve the eurozone crisis as a satisfying compromise.

Under the mandatory scheme Europes banks will be forced to find about 106bn euros of extra capital by the end of June to meet a 9 per cent capital threshold, after revaluing sovereign debt at market rate.

Germanys 13 lenders are estimated to need a further 5.2bn euros, a figure that is significantly below some analysts predictions.

Deutsche Bank has already written down the value of its Greek bonds by more than 50 per cent and said this week it would not need to take additional management action or take public money.

Meanwhile, Commerzbank, Germanys second-largest lender by market capitalisation, said it would also not seek state aid in seeking to reach a sum of 2.9bn euros in extra capital calculated by the EBA. Commerzbank holds Greek bonds currently valued at around 2.2bn euros, the most among German banks.

We can reach the required ratio by means of a reduction in risk-weighted assets in non-core areas, the sale of non-strategic assets or retained earnings, for example. One thing goes without saying: We do not intend to make use of public funds, said Eric Strutz, chief financial officer.

We welcome the fact that the markets now have clarity with respect to the requirements put into place by EBA from mid-2012 onwards, he added.

Commerzbank is due to report quarterly results on November 4.

The Financial Times Limited 2011