The Tell: The head of Germany’s largest bank says negative rates are ‘fatal’

Add John Cryan to the ensemble of Wall Street heavyweights decrying the emergence of negative-yielding debt.

Cryan, the chief executive of Deutsche Bank—Germany’s largest and most prominent bank, with some €­­1.7 trillion ($1.9 trillion) in assets—cautioned that the negative interest-rate policy could have “fatal consequences.” He made is remarks as part of a guest commentary published in the German newspaper Handelsblatt on Aug. 23.

“Monetary policy is now running counter to the aims of strengthening the economy and making the European banking system safer,” Cryan said, ahead of a bank summit starting Aug. 31.

Cryan also said negative rates punish savers and could have disastrous implications for pensions, which attempt to match their liabilities with safe, interest-bearing assets like bonds.

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