Deutsche Bank has denied claims made in a German magazine which caused it to tumble more than 7 percent on Monday, triggering a fall in European shares.
The German lender hit an all-time low after Focus magazine quoted unidentified government sources saying that Chancellor Angela Merkel had ruled out state assistance for the bank and rejected any interference in a case where the US justice department (DOJ) is demanding $14 billion.
As a result, the pan-European STOXX 600 index fell 1.6 percent to a one-week low. The index is down by around 7 percent since the start of 2016.
But a Deutsche Bank spokesman said on Monday that "at no point" had its Chief Executive John Cryan "asked Chancellor Merkel to intervene in the RMBS [residential mortgage-backed securities]" dispute with the DOJ, and that a government bailout was not on the agenda.
"Deutsche Bank is determined to meet the challenges on its own," the spokesman added.
Deutsche Bank previously said it has "no intent" to settle the potential civil claims made by the DOJ in relation to products sold ahead of the financial crisis "anywhere near the number cited."
Having seen a 58 percent drop in profit in the first quarter of this year, Deutsche Bank is struggling to turn around its fortunes after its US subsidiary failed a stress test by the Federal Reserve in July.
The bank also suffered a loss of approximately $5.8 billion in legal costs after being charged for past wrongdoings.