The chatter surrounding embattled lender Deutsche Bank reached almost deafening volume Friday with various reports of capital raising plans amid renewed confidence in its share price.
A report Thursday in German newspaper Handelsblatt said that the bosses of several of the country's blue-chip companies have discussed the issues at the bank and are readying an offer of capital injection if needed. Meanwhile, Bloomberg also reported that the bank was informal talks with securities firms to explore options on capital-raising.
The perception is that Deutsche Bank needs to raise cash after the U.S. Justice Department (DOJ) suggested it pay $14 billion to settle a number of investigations related to mortgage securities. Initial worries about Deutsche Bank actually surfaced earlier in the year, with investors detailing concerns over its exposure to the energy sector and a possible cash crunch.