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FIRST ON CNBC: CNBC TRANSCRIPT: CNBC’S MARIA BARTIROMO SPEAKS WITH DEUTSCHE BANK CHAIRMAN & CEO JOSEF ACKERMANN TODAY ON CNBC

WHEN: TODAY, THURSDAY, JANUARY 26TH

WHERE: CNBC’S “SQUAWK ON THE STREET

Following is the unofficial transcript of a FIRST ON CNBC interview with Deutsche Bank Chairman & CEO Josef Ackermann today on CNBC. All references must be sourced to CNBC.

Video: A Greek Deal Is Critical: Deutsche Bank CEO

BARTIROMO: THANK YOU SO MUCH. EARLIER THIS WEEK CHRISTINE LAGARD TOLD ME WE NEED MUCH STRONGER FIREWALLS IN OTHER WORDS REAL WIGGLE ROOM IN TERMS OF A BAILOUT FUND. WE'RE TALKING ABOUT THAT WITH JOSEPH ACKERMAN, HE'S THE CHAIRMAN AND CEO OF DEUTSCHE BANK AND VERY VERY OBVIOUSLY INSIDE IN TERMS OF WHAT’S HAPPENING IN THE EUROZONE RIGHT NOW. GOOD TO HAVE YOU ON THE PROGRAM. FIRST OF ALL, I WANT TO GET YOUR TAKE ON THE FIREWALLS AND WHAT'S REQUIRED. BEFORE WE GET INTO THAT, LET'S TALK ABOUT THIS GREEK NEGOTIATION AND WHAT IS GOING WRONG. WHAT'S YOUR TAKE ON WHAT'S HAPPENING?

ACKERMANN: I DON'T THINK ANYTHING IS GOING WRONG, ACTUALLY. THEY ARE NEGOTIATING. WE NEED SOMEONE ON THE PUBLIC SECTOR SIDE WHO CAN REALLY MAKE DECISIONS AND FINALLY I THINK WE ARE GETTING CLOSER TO THAT. WE ARE WILLING TO NEGOTIATE. WE HAVE MADE A PROPOSAL, WHICH IS A PROTECTIVE ONE FOR ALL THE PEOPLE INVOLVED, AND I THINK WE HAVE EVERY INTEREST TO COME TO SOLUTION IN THE NEXT FEW DAYS. BECAUSE DEFAULT WOULD BE THE WORST OUTCOME. WE ALSO ENCOURAGE ALL THE PARTICIPANTS WHO CAN CONTRIBUTE TO CONTRIBUTE SOMETHING, BECAUSE AT THE END TOO MUCH IS AT STAKE HERE FOR EUROPE IN TERMS OF CONTAGION BUT ALSO I THINK FOR THE GLOBAL ECONOMY.

BARTIROMO: I'M GLAD YOU SAID THAT, DEFAULT WOULD BE THE WORST SCENARIO. I WANT TO TALK TO YOU ABOUT THAT. WHAT IS THE WORST-CASE SCENARIO? ARE YOU SAYING THAT THE DEFAULT WOULD MEAN ITALY, PORTUGAL, SPAIN EVERYBODY GETS RIPPLE EFFECTS AND GETS IMPACTED? WHY IS DEFAULT SO DAMAGING?

ACKERMANN: FIRST OF ALL, THE DEFAULT IS DAMAGING BECAUSE PEOPLE ARE UNDERESTIMATING THE COLLATERAL OF DAMAGES. IT'S NOT ONLY SOVERIGN RISK OF 370 BILLION EUROS BUT IT IS ALSO FOR INSTANCE THE PAYMENT SYSTEM WITHIN THE CENTRAL BANK CONCEPT, WHICH IS ANOTHER HUNDRED BILLION JUST GERMANY TO GREECE. THERE ARE MANY OTHERS. THERE ARE INVESTMENTS IN GREECE. THERE ARE EXPOSURES TO GREEK COMPANIES, SO A DEFAULT COULD BE A COLLAPSE OF GREECE. THAT WOULD BE A VERY, VERY BAD OUTCOME. ON TOP OF THAT, AS YOU JUST SAID, THERE COULD BE CONTAGION WHICH IS DIFFICULT TO SAY BUT. PORTUGAL ALREADY SOMEWHAT UNDER ATTACK, AND OTHER COUNTRIES ARE ALSO BEING SCRUTINIZED VERY CLOSELY. THAT’S WHY I SAY WE HAVE TO AVOID WITH ALL MEANS AVAILABLE A DEFAULT.

BARTIROMO: OK LET ME ASK YOU ABOUT THE REST OF THE EUROZONE AND FUNDAMENTALS. WE HEAR THE ECB'S RECENT FACILITY REALLY STABILIZE THINGS FOR THE BANKING SECTOR. WOULD YOU AGREE WITH THAT OR IS THIS A TEMPORARY BAND-AID? TELL ME ABOUT THE LATEST FACILITY.

ACKERMANN: THERE'S ALMOST 500 BILLION VERY CRUCIAL. BECAUSE WE KNEW IN DECEMBER THAT THERE'S SO MUCH ADDITIONAL NEED FOR CAPITAL FROM BANKS BUT ALSO FROM THE COUNTRIES ON THE PERIPHERY. THERE WAS NO ONE REALLY WILLING TO PROVIDE THIS KIND OF CAPITAL AND FUNDS. IN THAT SENSE THE ECB MOVE WAS CRUCIAL AND VERY POSITIVE FOR THE BANKING SYSTEM. IT CALMED DOWN MARKETS, BUT IT IS NOT THE FINAL SOLUTION. WE HAVE TO SEE THAT ALL THE COUNTRIES ARE DOING THEIR HOMEWORK SO THEY CAN GO BACK AND RAISE FUNDS IN THE MARKET AND FOR THEMSELVES. I HAVE TO SAY THAT ITALY, THAT SPAIN UNDER THE NEW GOVERNMENT, PORTUGAL AS WELL ARE DOING A LOT OF GOOD THINGS, AND WE JUST HAVE TO BE A LITTLE BIT PATIENT AND THAT'S WHY A CONTAGION IMPACT FROM GREECE WOULD BE SO NEGATIVE AND COUNTER-PRODUCTIVE BECAUSE WE WOULDN'T HAVE THE TIME NOW GIVEN TO THE COUNTRIES TO ABSORB THE SHOCKS IN THEIR COUNTRIES AND TO RECOVER.

BARTIROMO: OF COURSE, MARIO MONTE IS NOT REALLY A POLITICIAN AT ALL A TECHNOCRAT IN FACT. A LOT OF PEOPLE SAY HIS APPROACH HAS BEEN VERY POSITIVE LIKE YOU JUST SAID. YOU LIKE THE CHANGES HE'S MAKING, BUT IS HE MAKING ENOUGH IN TERMS OF LABOR REFORM?

ACKERMANN: FIRST OF ALL, HE'S DOING A LOT OF 140 BILLION EUROS OF SAVINGS OVER THREE YEARS, WHICH REPRESENTING 8.5% OF THE ITALIAN ECONOMY. THAT'S A HUGE AUSTERITY PROGRAM. ARE THERE ADDITIONAL MEASURES WHICH WILL BE NECESSARY ON THE LABOR SIDE LIKE IN SPAIN AS WELL? YES, ABSOLUTELY. YOU HAVE TO GO AS FAR AS THE PEOPLE IN GENERAL ARE WILLING TO SUPPORT IT. I THINK ITS ALREADY VERY COURAGEOUS WHAT HE'S DOING, BUT NOW HE HAS TO FOCUS ON GROWTH. IT'S NOT ONLY A QUESTION OF REDUCING DEBT OR FISCAL DEFICITS, IT'S A QUESTION OF PROVOKING AND GENERATING GROWTH. WE ALL KNOW THAT UNEMPLOYMENT IN THIS COUNTRY, ESPECIALLY IN SPAIN UNDER THE 25-YEAR-OLD PEOPLE IS ROUGHLY 45%. IN ITALY 30% AND 40% IN GREECE. THERE'S A SOCIAL TIME BOMB TO TAKE INTO ACCOUNT WHEN WE TALK ABOUT ADDITIONAL PROGRAMS.

BARTIROMO: ONE REASON THAT CHRISTINE LAGARD EARLIER TOLD ME THIS WEEK, WE NEED MUCH STRONGER FIREWALLS. TALK ABOUT THE FIREWALLS AND BAILOUT FUNDS. DO THE FIREWALLS -- ARE THEY SIGNIFICANT ENOUGH.

ACKERMANN: THIS IS A BIG CONTROVERSY. ON ONE SIDE, YES, ABSOLUTELY GLOBAL FINANCIAL MARKETS ARE EXPECTING A MUCH BIGGER FIREWALL IN ORDER TO ABSORB CONTAGION IMPACT. ON THE OTHER YOU ALSO HAVE TO UNDERSTAND GERMANY CANNOT GO AHEAD TOO FAR WITHOUT RISKING THEIR OWN CREDIT STANDING. IF GERMANY IS INTO A DIFFICULT AND FRAGILE SITUATION, WHICH IS FAR AWAY NOW, BUT IT'S A RISK AND THEN OF COURSE ALL THESE MEASURES WILL BE COUNTER-PRODUCTIVE. SO I THINK WHAT MRS. MERKEL IS SAYING LET'S DO IT STEP BY STEP. AT THE END OF COURSE WE NEED A BIGGER FIREWALL IN CASE THERE IS A CONTAGION. THAT'S WHY WE HAVE TO EXTINGUISH THE FIRE FIRST IN GREECE. NO DEFAULT, BECAUSE WITHOUT THE DEFAULT I'M PRETTY SURE WE WON'T HAVE CONTAGION WITH DEFAULT WE WILL HAVE CONTAGION AND WE NEED TO HAVE A BIGGER FIREWALL. THIS IS A VERY, VERY COMPLEX SYSTEM ONE IS HAVING AN IMPACT ON THE OTHER.

BARTIROMO: COMPLEX SYSTEM AND ALSO SORT OF A VICIOUS CYCLE.

ACKERMANN: IT'S TO SOME EXTENT A VICIOUS CIRCLE.

BARTIROMO: LET ME ASK YOU ABOUT DEUTSCHE BANK IN PARTICULAR. WHAT'S THE EXPOSURE TO THE SOVEREIGN RISK AT DEUTSCHE BANK?

ACKERMANN: WE HAVE REDUCED OUR SOVEREIGN RISK VERY EARLY ON. WE HAVE PRACTICALLY MARGINAL RISK TO GREECE AND MARGINAL RISK TO ALL THE OTHER COUNTRIES. IN THAT SENSE I'M NOT TALKING FROM MY OWN HOUSE, BUT, OF COURSE, INDIRECTLY IF THERE WAS A, LET'S SAY, DISSIPATION OF THE MARKET BECAUSE OF CONTAGION, OF COURSE EVERY BANK WOULD BE EFFECTED. THE DIRECT EXPOSURE WE HAVE IS VERY SMALL.

BARTIROMO: IN TERMS OF THE CAPITAL AND WHERE YOU ARE AS WE LEAD UP TO THE REQUIREMENTS FOR BASIL 3, ARE YOU COMFORTABLE?

ACKERMANN: VERY COMFORTABLE. WE WILL MEET THE REQUIREMENTS OF THE EUROPEAN BANKING AUTHORITIES BY THE END OF THIS YEAR, AT THE END OF JUNE 2012. SO IN THAT SENSE WE HAVE EARLY REPRESENTATION. I THINK WE'RE EXTREMELY WELL CAPITALIZED.

BARTIROMO: ARE YOU EXPECTING ANOTHER SIZABLE FACILITY FROM THE ECB NEXT MONTH? WE’RE ALL ANTICIPATING SOMETHING ELSE ON TOP OF THAT LTR PROGRAM.

ACKERMANN: YEAH. I'M EXPECTING SOMETHING ON TOP OF THAT, BUT IT VERY MUCH DEPENDS ON WHAT WILL HAPPEN IN GREECE AND IN TERMS OF CONTAGION. IF YOU DON'T NEED IT AND MARKETS COME DOWN AND PEOPLE ARE CAPABLE OF RAISING FUNDS AGAIN, BANKS AND COUNTRIES, OF COURSE, WE WOULDN'T NEED A BIG UMBRELLA. BUT IF THIS IS NOT GOING TO HAPPEN, THEN WE NEED MORE SUPPORT FROM THESE. THIS IS THE RIGHT THING TO DO.

BARTIROMO: ARE YOU EXPECTING TO RAISE CAPITAL AT DEUTSCHE BANK THIS YEAR?

ACKERMANN: ABSOLUTELY NOT.

BARTIROMO: ABSOLUTELY NOT. YOU DON'T HAVE TO SELL ASSETS IN ORDER TO MEET ANY REQUIREMENTS. YOU FEEL VERY COMFORTABLE IN TERMS OF CAPITAL LEVELS LEADING INTO ALL OF THIS REGULATORY.

ACKERMANN: WE STARTED TO DE-LEVERAGE ESPECIALY ON THE TRADING BOOK SIDE ABOUT TWO YEARS AGO. SO WE MADE EXTREMELY STRONG PROGRESS IN THAT, AND WE HAVE ALMOST DONE THAT NOW IN TERMS OF DIVESTMENTS. WE MAY DO SOMETHING WHERE WE DON'T NEED IT.

BARTIROMO: LET ME ASK YOU ON THE TRANSACTION TAX. WHAT KIND OF AN IMPACT WILL THAT HAVE ON TOP OF EVERYTHING WE ARE TALIKING ABOUT?

ACKERMANN: IT'S A TAX EXCLUSIVELY IN FRANCE AND GERMANY, AND IT WOULD IT BE DEVASTATING FOR THESE TWO COUNTRIES. NOT FOR DEUTSCHE BANK BUT FOR THE COUNTRIES. I DON'T UNDERSTAND TALKING ABOUT JOB CREATION, TALKING ABOUT ACTUALLY GOING FORWARD IN TERMS OF UNITED EUROPE TO TALK ABOUT TAXES IN DIFFERENT COUNTRIES SO I AM VERY GRATEFUL TO DAVID CAMERON FOR SAYING THAT BECAUSE WE NEED RESISTANCE FROM THE UK IN ORDER TO PREVENT THIS TAX TO HAPPEN IT IS WRONG IN EVERY ASPECT ITS WRONG ASSUMPTIONS ABOUT TAX REVENUES ITS WRONG IN TERMS OF VOLATILITY BECAUSE LESS LIQUIDITY IN THE MARKET MEANS NORMALLY MORE VOTALITIY SPECULATION WILL BE AROUND IF THIS IS THE PROBLEM SOME PEOPLE HAVE SO IN THAT SENSE IT IS ONLY COUNTERPRODUCTIVE AND I DON’T UNDERSTAND WHY FOR POPULIST REASONS WHY PEOPLE ARE PUSHING THAT

BARTIROMO: PARTICULARLY AT SUCH A FRAGILE TIME IN THE ECONOMY

ACKERMANN: ON TOP OF THAT BUT THEY ACTUALLY SHOULD STRENGTHEN THE FINANCIAL SYSTEM IN ORDER TO DO WHAT IS REQUIRED FROM US AND I MEAN TO SUPPORT THE REAL ECONOMY GOING FORWARD AND YOU NEED THE RISK APPETITE, YOU NEED THE REVENUES AND YOU NEED THE LENDING CAPABILITIES TO SUPPORT

BARTIROMO: JOSEF IT WAS GREAT TO HAVE YOU ON THE PROGRAM

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