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CNBC's Jim Cramer said Friday that German lender Deutsche Bank probably won't pay the proposed $14 billion settlement to the U.S. Justice Department due to the political friendship between President Barack Obama and German Chancellor Angela Merkel.
In the past couple of weeks, Deutsche Bank has been hit with billions in fines from the DOJ and reports that the German government won't help the bank.
"I do think that the Justice Department at a certain point will react to some politics," Cramer said on "Squawk Box."
Cramer continued to say on "Squawk on the Street," that "at a certain point, Obama and Merkel are friends. ... They're not going to wipe out a company with 100,000 employees when President Obama is in good relationship with Merkel. On the way out, it is not going to be [Obama's] game, set, match to wipe out this company. So, what I'm saying is the $14 billion now from what I understand is going to be reduced dramatically."
Cramer's comments come even after a Reuters report said Friday that Obama and Merkel did not discuss U.S. authorities' demands for Deutsche Bank to pay the proposed fine, and a Finance Ministry spokesman said the German government denies reports that it is working on a rescue plan.
— CNBC's Evelyn Cheng contributed to this report.