Transaction Tax Will Drive EU Bank Customers Away: Ackermann
The proposed plan for the euro crisis announced by German Chancellor Angela Merkel and French President Nikolas Sarkozy Tuesday is a "step in the right direction," showing their commitment to defending the euro and addressing European Union debt issues, Josef Ackermann told CNBC Wednesday.
But the Deutsche Bank chief executive said he was disturbed by "the revival of the transaction tax," which he warned would not only make it more difficult for banks like his to be profitable in the euro zone but will drive bank customers to other areas of the world, including the U.S. and emerging markets.
Europe is becoming more stable and "Greece is making good progress," said the CEO of Germany's largest bank. "Europe is doing the right things."
Ackermann said he is against two things not mentioned by the French and German leaders — an expanded rescue fund for troubled EU members including Greece, and some form of joint European borrowing.
Joint borrowing, he said, "can only work if have a political union," while expanding the fund would have to be sold to voters in the EU countries, because there is "growing resistance" to those measures, especially in Germany.
"Before we move on with any expansion of the rescue fund, every country has to do a better job of reducing the debt burden," Ackermann said. "At the same time, can politicians stimulate growth? I'm pretty confident Europe is moving in the right direction [already]."
Ackermann said Deutsche Bank is well-capitalized, with core Tier 1 assets of over 10 percent, reduced risk assets and almost no exposure to Portugal, Italy, Ireland, Greece and Spain. (For more, see: PIIGS)
After good first and second quarters, he said, the bank is "looking forward to other good quarters. We've never had any funding problems...Our position is very strong and continues to be strong."