Germany’s mighty Deutsche Bank has seen its share price hit a record low on Monday despite the bank’s denial that it was seeking State aid.
The troubled bank, Germany’s largest lender, anyway had lost more than half its market value this year but lost a further 7% following a report claiming the German government had ruled out financial help as the bank facing a possible $14bn payout to US regulators relating to the sale of mortgage-backed securities whcih helped trigger the crisis.
Investors fear that the bank will have to raise significant sums to pay the final settlement to the Americans and do not want to fund the payout.
The bank insisted today that raising more capital was "currently not on the agenda" while denying it already had asked the German government to intervene with the US regulators on its behalf.
The bank also denied the suggestion that it was seeking a State-backed bailout, "Deutsche Bank is determined to meet its challenges on its own," read a statement.
CEO of the Deutsche Bank, John Cryan, already had embarked on a cost-cutting and restructuring exercise to restore profitability but low interest rates have reduced earnings, as they have for all banks.
Europe's banking stocks today also suffered with António Horta Osorio’s Lloyds Banking Group down 3%, as was Royal Bank of Scotland.
In Lisbon, the PSI-20 also closed down. The index lost less than the European counterparts with a 0.20% slide in a session marked by the recovery of BCP shares.
Comments
They must have seen this coming when they tempted less wary, albeit easily 'enticed' and equally-corrupt extra members to join the joint pot.