Sal. Oppenheim, the Luxembourg-based private bank, has raised its equity capital by E300 million. The injection was made by shareholders and financed by Deutsche Bank. The injection is expected to relieve any short-term pressure on the bank and strengthen Deutsche bank’s role – reported Financial Times.
The 220-year-old institution has claimed that it now has equity of around E2.1 billion and a total capital ratio of 13.3%. The bank has said that raising the equity is the first step in the constructive talks that are underway between the two banks, concerning Deutsche Bank acquiring a stake in Sal. Oppenheim.
Oppenheim’s possible equity partnership with the Germany bank emerges, as the talk of consolidation among the Europe’s private banks that are scrambling for capital and clinets due to the financial crisis gathers momentum. Further, increasing scrutiny of governments across the globe is also putting pressure on wealth managers and private banks.
