Politics in US and Germany to blame for Deutsche Bank mess: Bond rater
Bond Rater Chris Whalen said on Friday ill-timed statements made by U.S. and Germany politicians are responsible for the global market panic centered around Deutsche Bank 's current affairs.
Deutsche Bank shares hit record lows this week amid worries that it might have to pay billions in fines from the U.S. Justice Department .
Whalen, the head of research at Kroll Bond Rating Agency, said on CNBC's " Fast Money Halftime Report " the problem began when the Justice Department demanded the bank pay $14 billion. It was then amplified by comments attributed to German Chancellor Angela Merkel 's office.
"Obviously, the German government is going to support their banks if they get in trouble, despite what rules they put in place," he said.
He later continued,"I think it's the statements by politicians, which are not well considered and which violate the basic rule that every regulator knows ... which is you don't talk about banks that are open."
The bond rater, who says his agency works with the bank everyday, said that politicians take advantage of banks. He said the politicians made mistakes with their comments and the market reaction is the result. "It is being overblown," he said.
