Bessent Pushes Back Against Report on European Sell-Off of US Assets

US Treasury Secretary Scott Bessent on Wednesday dismissed market speculation that European investors are preparing to divest from US assets, saying the claim stemmed from the views of a single analyst and does not reflect the position of Deutsche Bank.

Speaking on the sidelines of the World Economic Forum in Davos, Bessent said that Deutsche Bank CEO Christian Sewing had personally contacted him to clarify that the German lender does not endorse a recent research note suggesting a potential pullback by European investors from American assets.

“The idea that Europeans are selling US assets came from just one analyst at Deutsche Bank,” Bessent said. “The CEO called to make it clear the bank does not stand behind that report.”

A spokesperson for Deutsche Bank declined to comment when contacted by Bloomberg.

The controversy follows a note published on Sunday by George Saravelos, Deutsche Bank’s Global Head of FX Strategy, which warned that trade and geopolitical threats by US President Donald Trump toward European governments, particularly over Greenland, could prompt European policymakers to reassess their exposure to US assets.

Saravelos argued that Europe’s role as the largest external financier of the United States could come under scrutiny if geopolitical stability within the Western alliance continues to erode.

According to the note, European countries collectively hold approximately $8 trillion in US assets, including equities and bonds, nearly twice the combined holdings of the rest of the world.

Europe’s holdings include around $3.6 trillion in US Treasury securities, accounting for roughly 40% of all Treasuries held by foreign investors, Saravelos wrote.

“In an environment where the geo-economic stability of the Western alliance is facing an existential challenge, it is unclear why Europeans would remain willing to play this role,” the note said, adding that recent developments could accelerate portfolio rebalancing away from dollar assets.

Bessent’s remarks appear aimed at calming investor concerns as geopolitical tensions and trade rhetoric continue to inject uncertainty into global markets. US officials have repeatedly emphasized the depth and resilience of transatlantic financial ties, even as political frictions flare.

While the Deutsche Bank research sparked debate over whether Europe could “weaponize” its holdings of US assets in response to US pressure, market participants say any large-scale divestment would be complex and potentially destabilizing for both sides.