Deutsche Bank's shares fell sharply on Friday local time, dropping as much as 14.9 percent at one point after a surge in default costs sparked fears of a widening banking crisis. The stock eventually ended the trading day in Frankfurt at a closing price of 8.54 euros, down 8.5 percent.
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Deutsche Bank Is Now An Attention
The cost for Deutsche Bank to protect against the risk of debt default – i.e. credit default swaps (CDS) – has climbed sharply and investors are worried about the banking sector's health.
The collapse of three regional banks in the United States and the forced takeover of Credit Suisse by UBS Group (UBS) led to a commotion in the market. Commerzbank also underperformed in Friday's session. It fell 8.5% at one point and closed down 5.45% at 8.88 euros.
In response to the news of the setback in Deutsche Bank's share price, German Chancellor, Olaf Scholz offered reassurance that the bank had modernized and reorganized its operations and was a profitable company. Investors doesn't need to worry.
Video Credit: Bloomberg Television
