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JP Morgan German head sees lessons from crisis

Thu Jul 30, 2009 1:56pm EDT

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FRANKFURT, July 30 (Reuters) - Karl-Georg Altenburg, head of JP Morgan's (JPM.N) German business, said he expects companies to learn from the financial crisis and aim for a stronger capital base in the longer term, according to a German paper.

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"We expect equity increases of 200-300 billion euros ($282-423 billion) in Europe this year," Altenburg told daily Frankfurter Allgemeine Zeitung in an interview published late on Thursday.

He said there was enough liquidity in the market. The volume of U.S. money market funds had more than doubled, he said.

"That is money that barely earns any returns, meaning it creates enormous pressure to invest."

In Germany, he said banks' business in restructuring of debt capital was attractive, as were hedging transactions. M&A adivising was going well, but not outstanding. (Reporting by Maria Sheahan; Editing by David Cowell)



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