Deutsche Bank ‘to pay €800 mln’ in Kirch case

Deutsche Bank will pay €800 million to the heirs of a media mogul whose empire collapsed after the bank’s CEO said investors were not willing to lend him any more money, the German media reported on Monday.

Deutsche Bank 'to pay €800 mln' in Kirch case
Photo: DPA

Leo Kirch died last year, nearly a decade after the collapse of his media empire which at one point included 40 percent of the huge Axel Springer publishing house and the majority shares of ProSiebenSat.1 as well as the rights to the Bundesliga’s football matches, Formula One, two football world cups and a range of film holdings.

Kirch sued the bank for more than €3 billion in compensation, saying the then Deutsche Bank CEO Ralf Breuer had “shot” him in 2002.

Breuer told an interviewer that year that as far as he had heard and read, the financial sector was no longer ready to keep making as much money available to Kirch as it had in the past.

“The interview slaughtered me,” Kirch said once. A court suggested that the two sides settle for €775 million, but Deutsche Bank rejected the idea.

People involved in the negotiations told a number of journalists on Monday that Deutsche Bank and lawyers representing Kirch’s heirs had agreed on a payment of €800 million.

Manager Magazin reported on Monday that the Deutsche Bank board would have to confirm the payment on Monday or Tuesday. The bank has previously said it did not have any money earmarked for such a payment.

DAPD/The Local/hc

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Deutsche Bank set ‘to cut ties with Trump’

Deutsche Bank will cease its longstanding relationship with outgoing US president Donald Trump, The New York Times reported on Tuesday.

Deutsche Bank set 'to cut ties with Trump'
Deutsche Bank's headquarters in Frankfurt. Photo: DPA

Deutsche Bank was Trump's primary lender for two decades, and he owes the institution more than $300 million, according to the newspaper, which cited an unnamed source as saying the German lender “has decided not to do business with Mr. Trump or his company in the future.”

Deutsche Bank declined to comment to AFP.

The move comes on the heels of last week's violent attack on the US Capitol by Trump supporters at the president's incitement, and follows steps taken by other companies to cut ties with Trump and his businesses.

READ ALSO: Trump under investigation for Deutsche Bank ties

Christiana Riley, head of Deutsche Bank's US division, called the violent
siege on the Capital “a dark day for America and our democracy” in a post on LinkedIn last week.

“We are proud of our Constitution and stand by those who seek to uphold it to ensure that the will of the people is upheld and a peaceful transition of power takes place,” Riley said.

“It is my hope that these shocking events will result in a reinvigoration
of the principles our nation was built upon.”

Trump's relationship with Deutsche Bank has sparked numerous probes in the United States, including in New York, where the Manhattan District Attorney is investigating whether Trump committed financial crimes as he sought loans.

READ ALSO: 'Worlds between us': What Trump's German family's town thinks of him today