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Deutsche Bank shares fall further to fresh low | Deutsche Bank shares fall further to fresh low |
(about 1 hour later) | |
Shares in troubled Deutsche Bank have fallen even further to a new low. | Shares in troubled Deutsche Bank have fallen even further to a new low. |
They fell another 3% to €10.22 during morning trading on the Frankfurt stock exchange. | They fell another 3% to €10.22 during morning trading on the Frankfurt stock exchange. |
Investors are increasingly worried about the financial health of the bank, which now faces a $14bn fine in the US for mis-selling mortgage-backed bonds before the financial crisis of 2008. | |
"The plight of Deutsche Bank could have far-reaching ramifications," said David Buik at stockbrokers Panmure Gordon. | |
Speaking after a meeting in Berlin, the German Chancellor Angela Merkel said: "I only want to say that Deutsche Bank is a part of the German banking and financial sector." | |
"And of course we hope that all companies, also if they face temporary problems, can develop in the right direction." | |
On Monday, the bank had denied suggestions that it had asked the German government for help in reducing the fine. | |
"At no point has [chief executive] John Cryan asked Chancellor [Angela] Merkel to intervene in the RMBS [residential mortgage-backed securities] issue with the US Department of Justice," the bank said. | |
"Deutsche Bank is determined to meet the challenges on its own." | "Deutsche Bank is determined to meet the challenges on its own." |
But what has continued to unnerve investors is the apparently well-sourced suggestion that the German government will not offer help, even if asked. | But what has continued to unnerve investors is the apparently well-sourced suggestion that the German government will not offer help, even if asked. |
The bank's shares have been falling steadily from a recent high of €27.80 last November. | The bank's shares have been falling steadily from a recent high of €27.80 last November. |
Panmure Gordon's Mr Buik said that if real problems did lurk at the bank, its shareholders would have to cough up: "Any rights issue will have to come from the private sector - there is little doubt that more capital is required. | Panmure Gordon's Mr Buik said that if real problems did lurk at the bank, its shareholders would have to cough up: "Any rights issue will have to come from the private sector - there is little doubt that more capital is required. |
"For the sake of the stability of markets, DB needs to get on with it, in the hope that the contents of 'Pandora's Box' are containable," he added. | "For the sake of the stability of markets, DB needs to get on with it, in the hope that the contents of 'Pandora's Box' are containable," he added. |
Mr Buik pointed out that Deutsche Bank shares were worth €39 in January 2014 and €99.60 back in July 2007. | Mr Buik pointed out that Deutsche Bank shares were worth €39 in January 2014 and €99.60 back in July 2007. |
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