Market Extra: German government denies it’s crafting a rescue plan for Deutsche Bank

The German government has denied its working on a rescue plan to help Deutsche Bank AG in case the country’s biggest lender struggles to raise fresh capital on its own to resolve legal disputes.

The rebuttal comes after German newspaper Die Zeit earlier on Wednesday reported that the government was ready to take as much as a 25% stake in the embattled lender in a worst-case scenario. The plan also reportedly showed Deutsche Bank DBK, +2.05%DB, +0.59% would be able to sell assets to other lenders, possibly with a state guarantee.

“The German government is not preparing a rescue plan, and there is no reason for such speculations,” said a spokesman for the German finance ministry, Martin Jäger, at a news conference on Wednesday, according to a Guardian report.

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