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- Shares in Deutsche Bank, Germany's largest lender, fell sharply on Friday, dragging down major European banks as fears about weaknesses in the global financial system send fresh shudders through the markets.
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Mar 24, 2023 · FRANKFURT, Germany (AP) — Shares in Deutsche Bank fell sharply Friday, dragging down other major European banks and leading German Chancellor Olaf Scholz to express confidence in the...
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Shares in Deutsche Bank, Germany's largest lender, have...
- Banking
Mar 24, 2023 · Shares in Deutsche Bank fell sharply Friday, dragging down other major European banks and leading German Chancellor Olaf Scholz to express confidence in the country's largest lender...
Mar 24, 2023 · Shares in Deutsche Bank, Germany’s largest lender, have fallen sharply and dragged down major European banks as fears about the global financial system send fresh shudders through the market.
- Overview
- Rattled by Silicon Valley Bank
Shares in Deutsche Bank, Germany's largest lender, fell sharply on Friday, dragging down major European banks as fears about weaknesses in the global financial system send fresh shudders through the markets.
Deutsche Bank shares were off 14% in early afternoon trading on the German stock exchange. The drop follows a steep rise in the cost of financial derivatives, known as credit default swaps, that insure bondholders against the bank defaulting on its debts.
Rising costs on insuring debt were also a prelude to a government-backed takeover of Swiss lender Credit Suisse by its rival UBS.
The hastily arranged marriage Sunday aimed to stem the upheaval in the global financial system after the collapse of two U.S. banks and jitters about long-running troubles at Credit Suisse led shares of Switzerland's second-largest bank to tank and customers to pull out their money last week.
Like Credit Suisse, Deutsche Bank is one of 30 banks considered globally significant financial institutions under international rules, so it is required to hold higher levels of capital reserves because its failure could cause widespread losses.
The Deutsche Bank selloff comes despite the German lender having capital reserves well in excess of regulatory requirements and 10 straight quarters of profits. Last year, it made 5.7 billion euros ($6.1 billion) in after-tax profit.
Markets have been rattled by fears that other banks may have unexpected troubles like U.S.-based Silicon Valley Bank, which went under after customers pulled their money and it suffered uninsured losses under higher interest rates.
Credit Suisse's troubles predated U.S. collapses of Silicon Valley Bank and Signature Bank, including a $5.5 billion loss on dealings with a private investment fund, but depositors and investors fled after the failures focused less friendly attention on banks and a key Credit Suisse investor refused to put up more money.
European officials say banks in the European Union's regulatory system — unlike Credit Suisse — are resilient and have no direct exposure to Silicon Valley and little to Credit Suisse.
European leaders, who are gathering Friday to gauge any risk of a possible banking crisis, say their banking system is in good shape because they require broad adherence to tougher requirements to keep ready cash on hand to cover deposits.
International negotiators agreed to those rules following the 2008 global financial crisis triggered by the failure of U.S. investment bank Lehman Brothers. U.S. regulators exempted midsize banks, including Silicon Valley Bank, from those safeguards.
The reassurances, however, have not stopped investors from selling the shares amid more general concerns about how global banks will weather the current climate of rising interest rates.
Mar 24, 2023 · Shares in Deutsche Bank have fallen sharply, dragging down other major European banks and reigniting fears about a widening banking sector crisis.
Sep 26, 2016 · European bank stocks are sliding this morning, dragged down by Deutsche Bank shares which have skidded to a multi-decade low. The Stoxx 600 Banks Index has dropped 2.3 per cent...
Mar 24, 2023 · Shares in Germany’s biggest bank, Deutsche Bank , plunged as much as 14.5% before paring its losses to close 8.5% lower. Shares in UBS (UBS) and Credit Suisse (CS) were 3.6% and 5.2% down ...
