Deutsche Bank's ship is steadied as JPMorgan's Dimon rows to its rescue

Deutsche Bank shares finally rallied today as Jamie Dimon came to the aid of his stricken rival.

The JPMorgan chief, perhaps the most powerful commercial banker in the world, insisted in an interview with US television that there is “no reason” Deutsche can’t resolve its troubles and return to strength.

Dimon, regarded as close to the Obama administration and the President, claimed most of the problems afflicting Deutsche were caused by government rather than management.

Deutsche is in settlement talks with the US Department of Justice over the sale of mortgage-backed securities.

The Justice Department wants $14 billion. Shares in Germany’s most important lender rose more than 1% in in Frankfurt today.

They rose 16 cents to €11.75, dramatically down on the year high of €27.98.

An unconfirmed report from the US said Deutsche could succeed in more than halving the level of the fine wanted by the US authorities.

Most banking analysts still think it will have to raise cash from shareholders to successfully move on from a crisis that has engulfed a firm vital to companies large and small across Europe.

That is worrying investors who are nervous of the shares even at these low levels.

Deutsche’s British chief executive John Cryan has blamed “speculators” for driving down the shares far below what he insists they are worth.