UBS, Deutsche Bank say no need for new capital

By John O'Donnell

FRANKFURT (Reuters) - Two of Europe's biggest investment banks, Switzerland's UBS (UBSN.VX) and Deutsche Bank (DBKGn.DE), moved to calm investors, telling them that they did not need extra cash to cope with the global markets crisis.

Deutsche Bank's shares jumped by more than 4 percent while UBS stock rose more than 3 percent on Wednesday.

Shareholders had been worried that more trouble lay ahead for UBS, which has already burned through $37 billion in writedowns during the market turmoil.

Many had also feared that Deutsche, originally seen as one of the victors in the credit crash, could suffer as it drags on.

Late on Tuesday, UBS Chairman Peter Kurer signaled that the bank's recent $15 billion rights issue drew a line under capital raising.

Asked about further capital hikes, Kurer told a Swiss television channel: "I am quite clearly of the opinion that this won't be the case."

His comments were echoed in Frankfurt where Deutsche Bank said on Wednesday it expected to make a profit in the second quarter of the year and did not need to turn to shareholders for extra money.

Investors breathed a sign of relief, helping both banks recover some of the ground lost as shareholders fretted. UBS stock was trading up 3.4 percent at 20.98 Swiss francs while Deutsche stormed ahead by 4.5 percent to 54.80 euros at 0842 GMT.