Deutsche Bank stability concerns grow as clients pull their assets | Daily Mail Online

 

Markets around the world were thrown into turmoil on Friday after shares in Germany’s biggest lender Deutsche Bank plummeted nearly nine percent in Frankfurt amid fears about its viability.

  • Shares were indicated down 8.83 percent in Frankfurt on Friday 
  • The immediate cause of Deutsche’s crisis is a fine, disputed by Deutsche
  • Chairman of Deutsche’s hedge fund business: ‘We have a perception issue’
  • In July the bank barely scraped through European stress tests 
  • The money markets are ‘playing with dynamite’ by driving down Deutsche Bank’s share price, chief executive of the Berlin stock exchange warned

Markets around the world were thrown into turmoil on Friday after shares in Germany’s biggest lender Deutsche Bank plummeted nearly nine percent in Frankfurt amid fears about its viability.

By 0725 GMT, its shares had shed 8.83 percent to 9.91 euros ($11.07), after news that a number of hedge funds had pulled money out of the German giant owing to concerns over its financial strength.

Traditional Frankfurt rival Commerzbank was pulled down with Deutsche, losing 7.3 percent to trade at 5.38 euros.

European stocks also started to lower.

Britain’s FTSE 100 fell 1.1 percent to 6,847.05 while France’s CAC 40 sank 1.7 percent to 4,366.89.

Germany’s DAX lost 1.6 percent to 10,243.71. Futures augured a tepid start on Wall Street. S&P futures and Dow futures both lost 0.2 percent.

The lurch followed a Bloomberg report on Thursday that a number of hedge funds that clear derivatives trades with Deutsche had withdrawn some excess cash and adjusted positions, a sign that counterparties are wary of doing business with it.

Read more: http://www.dailymail.co.uk/news/article-3815306/Concerns-stability-stricken-Deutsche-Bank-grow-clients-pull-assets-bank-admits-image-problem-wake-14bn-fine-sale-mortgage-securities.html#ixzz4Ll2ow7NI
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