Despite its current challenges, Deutsche Bank is not struggling as much as current speculation suggests, Mark Yusko, CEO of Morgan Creek Capital Management, told CNBC on Friday.
Not only does the German banking powerhouse have a lot of capital cushion, it's not holding a lot of terrible assets that were seen in the United States during the financial crisis, Yusko said on "Squawk Box."
Deutsche Bank's stock has been cut in half this year, with losses accelerating in recent weeks on concerns over a capital crunch in the face of a proposed settlement with the U.S. Department of Justice that could reach $14 billion and on reports of hedge fund selling.
The German lender's shares hit another all-time low in European trading Friday, but recovered late in the session to end higher. After record lows Thursday on Wall Street, Deutsche Bank's stock that trades in the U.S. was sharply higher midday Friday.
Any comparison of the German institution to investment banks in the U.S. is "silly," Yusko said, arguing that heading into the 2008 crisis Lehman Brothers and Bear Stearns were subject to significantly more distress and funding imbalance than Deutsche Bank today.
"The U.S. banks were so highly levered at the time, which they shouldn't have been, and things started to unravel because they were bad assets, they were bad loans. I don't think you have that problem in Germany today," he said.
Deutsche Bank won't likely have big woes, he said, and may end up being a solid long-term buy. But where the German bank may struggle, he acknowledged, is getting back on its feet in the industry, since "banking is a confidence game."