This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-37516805
The article has changed 13 times. There is an RSS feed of changes available.
Version 5 | Version 6 |
---|---|
Deutsche Bank chief Cryan tries to reassure on bank's strength | Deutsche Bank chief Cryan tries to reassure on bank's strength |
(about 1 hour later) | |
The chief executive of troubled Deutsche Bank has emailed the 100,000 staff to reassure them that the German giant's finances are strong. | The chief executive of troubled Deutsche Bank has emailed the 100,000 staff to reassure them that the German giant's finances are strong. |
John Cryan told them the bank had become the object of "hefty speculation" and that "new rumours" were causing the share price to fall. | John Cryan told them the bank had become the object of "hefty speculation" and that "new rumours" were causing the share price to fall. |
Deutsche's shares hit new lows on Friday as confidence in the bank continued to falter. | Deutsche's shares hit new lows on Friday as confidence in the bank continued to falter. |
But Mr Cryan said the bank's reserves and profits underlined its strength. | |
He pointed out that Deutsche had €215bn in reserves and made €1bn in profits for the last six month. At no point in the last 20 years had Deutsche been as strong as it is now, Mr Cryan insisted. | |
"The release of the memo... seems to have taken the edge off of the German company's dramatic" share price decline, said SpreadEx analyst Connor Campbell. | |
Deutsche shares were down 5% at midday, having fallen 9% earlier. | |
That followed a big fall overnight in the bank's Wall Street-listed shares, a drop sparked by reports that some hedge funds had withdrawn money from the bank. | |
$14bn fine | |
But Deutsche Bank is under the most pressure of any bank since the financial crisis. | But Deutsche Bank is under the most pressure of any bank since the financial crisis. |
Investors are increasingly worried about the financial health of the bank, which faces a $14bn fine in the US for mis-selling mortgage-backed bonds before the financial crisis of 2008. | Investors are increasingly worried about the financial health of the bank, which faces a $14bn fine in the US for mis-selling mortgage-backed bonds before the financial crisis of 2008. |
The bank's shares, worth about €10.4 on Friday, have been falling steadily from a recent high of €27.80 last November. But at their peak in May 2007, before the start of the banking crisis, the shares were valued at almost €100. | |
What led to Deutsche Bank's woes? | What led to Deutsche Bank's woes? |
Deutsche Bank threat has grown | Deutsche Bank threat has grown |
US seeks $14bn from Deutsche Bank | US seeks $14bn from Deutsche Bank |
Deutsche's woes hit bank shares across Europe. German rival Commerzbank was down about 6%, while the shares in UK, Swiss, French and Italian banks also suffered. | |
Unpopular | Unpopular |
In Italy, Economy Minister Pier Carlo Padoan told La Stampa newspaper that it was in everyone's interest "to look for solutions that must then be carefully handled". | In Italy, Economy Minister Pier Carlo Padoan told La Stampa newspaper that it was in everyone's interest "to look for solutions that must then be carefully handled". |
But the German government's position is not clear. | But the German government's position is not clear. |
Although a newspaper report earlier this week suggested the German government had made some provisional plans to rescue Deutsche, this would be politically unpopular. | Although a newspaper report earlier this week suggested the German government had made some provisional plans to rescue Deutsche, this would be politically unpopular. |
Eckhardt Rehberg, parliamentary budget spokesman for Chancellor Angela Merkel's conservative CDU party, told Reuters: "At the present time, I would rule out any capital help. That would not be the right way to go." | Eckhardt Rehberg, parliamentary budget spokesman for Chancellor Angela Merkel's conservative CDU party, told Reuters: "At the present time, I would rule out any capital help. That would not be the right way to go." |
Deutsche Bank made a net loss of €6.8bn last year and has embarked on a round of hefty cost-cutting that includes shedding 15% of its 100,000-strong global workforce. | Deutsche Bank made a net loss of €6.8bn last year and has embarked on a round of hefty cost-cutting that includes shedding 15% of its 100,000-strong global workforce. |
Like most of the world's leading banks, Deutsche Bank has been embroiled in the major banking scandals of recent years, including rigging interest rates. | Like most of the world's leading banks, Deutsche Bank has been embroiled in the major banking scandals of recent years, including rigging interest rates. |