Chancellor Angela Merkel’s government is partly to blame for market mistrust in Deutsche Bank AG because it spearheaded implementation of new liability rules for bondholders in a law passed last year, the lender’s Co-Chief Executive Officers John Cryan and Juergen Fitschen told the Frankfurter Allgemeine Zeitung.

While the government has solved the problem of liability capital, it created other problems that only exist in Germany and that “makes us a special case internationally,” Cryan told the newspaper. Fitschen said “national solo efforts” by the government that aren’t matched elsewhere don’t help.

Litigation issues are another reason why financial markets mistrust Deutsche Bank, with the greatest litigation risks stemming from the U.S., FAZ cited Cryan as saying. Deutsche Bank will also carefully examine its set-up in Russia after transactions with Russian shares raised questions as to how effective the lender’s “systems and controls” are, Cryan said.

Both CEOs see no need…