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| Banks shares hit as investor nerves return | Banks shares hit as investor nerves return |
| (32 minutes later) | |
| Bank shares across Europe have fallen sharply as worries over the financial strength of the sector return. | Bank shares across Europe have fallen sharply as worries over the financial strength of the sector return. |
| Shares in Germany's Deutsche Bank saw the biggest fall, dropping 13%, and there was also a sharp jump in the cost of insuring against losses on its debt. | Shares in Germany's Deutsche Bank saw the biggest fall, dropping 13%, and there was also a sharp jump in the cost of insuring against losses on its debt. |
| Investors have already been spooked by the collapse of two US banks and the rushed takeover of Swiss giant Credit Suisse by its rival UBS. | Investors have already been spooked by the collapse of two US banks and the rushed takeover of Swiss giant Credit Suisse by its rival UBS. |
| Stock markets in London, Germany and France were all lower. | Stock markets in London, Germany and France were all lower. |
| Other banks to see hefty share falls included Germany's Commerzbank, down 8%, and France's Societe Generale, which fell 7%. | Other banks to see hefty share falls included Germany's Commerzbank, down 8%, and France's Societe Generale, which fell 7%. |
| In the UK, Barclays and NatWest were both down by about 6%. | In the UK, Barclays and NatWest were both down by about 6%. |
| Russ Mould, investment director at AJ Bell, said the drop in Deutsche Bank's share price was "indicative of a wider loss of confidence in the banking sector". | |
| "There's a gathering fear that central banks may have overdone it with interest rate increases, having left them too low for too long," he said. | |
| With the possibility of recession, "banks will generally find it pretty hard going". | |
| He added that investors were pulling money from regional banks and banks with big investment arms, and investing in bigger traditional banks. | |
| Bloomberg News also reported that UBS and Credit Suisse were being investigated by the US Department of Justice into whether they had helped Russian oligarchs avoid sanctions. | |
| Mr Mould said this news was "clearly unfortunate" and "not ideal timing" given the UBS takeover of Credit Suisse. | |
| Related Topics | Related Topics |
| FTSE 100 | FTSE 100 |
| Stock markets | Stock markets |
| UBS | UBS |
| Banking | Banking |
| Credit Suisse | Credit Suisse |