FRANKFURT (Reuters) - Aides to German ChancellorAngela Merkeltold lawmakers last week the state would not take a stake inDeutsche Bank <DBKGn.DE>if it were to issue new stock, the Wall Street Journal said on Friday, citing a person who attended the briefing.

Deutsche has been engulfed in crisis since news emerged last month of a U.S. Department of Justice demand for $14 billion to settle allegations that it mis-sold mortgage securities before the global financial crisis. It is fighting the claim but might have to turn to investors for more money depending on the size of any eventual settlement.

In a closed-door briefing with a small group of lawmakers last week aides to the Chancellor and senior Finance Ministry officials said it was "inconceivable for the state to take a stake in Deutsche Bank," the newspaper said.

"We have a different bank resolution system than in 2009 and this must apply to us in Germany too," the government officials said according to the person.


Deutsche Bank and the finance ministry declined to comment.

The German government has repeatedly said state help for Deutsche Bank is not on the table, but sources said that behind the scenes the government was looking into options for the country's biggest lender.

Deutsche Bank's finance chief told staff representatives last month that job cuts at the bank could be double that planned, a step that could remove 10,000 further employees, a person with direct knowledge of the matter told Reuters.

(Reporting by Harro ten Wolde; Additional reporting by Holger Hansen in Berlin; Editing by Greg Mahlich and Susan Thomas)

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