Deutsche Bank's (DBKGn.DE) top economist said U.S. President-elect
Donald Trump will be an improvement on "a mediocre status quo" and
drive economic growth in the country higher.
"We will see a move from dogma to
pragmatism," David Folkerts-Landau said at a dinner with journalists on
Monday, forecasting U.S. economic growth in 2018 would be more than double the
1.5 percent seen for 2016.
"While Trump introduces higher
uncertainty, this is better than the near certainty of the continuation of a
mediocre status quo," Folkerts-Landau wrote in a presentation for the
event in Deutsche Bank's striking glass skyscraper, which is prominent on
Frankfurt's skyline.
Following a divisive election campaign,
president-elect Trump has assembled a cabinet of top officials that includes
business leaders and three retired generals, which Folkerts-Landau described as
a "business men administration".
"We will see a much more flexible
approach to taking decisions," he added.
Deutsche Bank, along with other banks,
has had a troubled recent history in the U.S. and last year agreed to a $7.2
billion penalty over toxic mortgage securities, after an initiative launched by
U.S. President Barack Obama to pursue banks for selling sub-prime debt without
warning of the risks.
Some banks hope that Trump will take a
more friendly approach to the industry, which has come under intense scrutiny
following the financial crisis.
Deutsche Bank, Germany's biggest
lender, has alienated many Germans by its aggressive pursuit of investment
banking. Last year, its U.S. arm, where roughly one in ten Deutsche Bank staff
are based, racked up a loss of 2.8 billion euros ($3 billion) - almost half the
total loss made by the group.
The bank has also been involved
directly with Trump, with U.S. filings showing it has lent his business empire
at least $180 million. That includes loans made in 2012 and 2015 that run until
2023 and 2024 respectively.
Deutsche Bank declined to comment on
these loans.
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