Germany accuses US of ‘economic war’

A top German official says the United States has waged an ‘economic war’ against Deutsche Bank over its alleged sales of mortgage-backed securities before the 2008 financial crisis.

Peter Ramsauer, the chairman of the economics committee of the German parliament, told the media that Washington has what he described as a “long tradition” of waging trade wars, if they are favorable to the US economy.

The case of the Deutsche Bank is an example of that, Ramsauer said in an interview with Welt am Sonntag.

The official further emphasized that Washington’s threat to force Deutsche Bank to pay a $14 billion fine over its business before the 2008 global crisis “has the characteristics of an economic war.”

“Extortionate damages claims” in the case are an example of that, said Ramsauer, as reported Russia Today on its website.

In September, Deutsche Bank announced that it plans to challenge the $14-billion claim by the US Department of Justice to settle an investigation into its sale of mortgage-backed securities.

Late Friday, media reported that Deutsche and the US regulators were close to a settlement of $5.4 billion. The report hasn’t been confirmed.

Meanwhile, Eckhardt Rehberg who is the spokesman of the German parliamentary budget committee has ruled out state aid for Deutsche Bank. Rehberg has been quoted by RT.com as saying that the bank’s risky business abroad has resulted in billions of euro in penalties.

"At the present time I would rule out any capital help. That would not be the right way to go,” said the politician.

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