Deutsche Bank

Deutsche Bank (XETRA: DBKGn.DB / NYSE: DB) today announced its decision to redeem its US $1,500,000,000 Fixed to Fixed Reset Rate Subordinated Tier 2 Notes ...

These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Deutsche Bank is the leading bank in Germany with strong European roots and a global network.

FTSE 100 also falls amid fears another bank could slip into trouble after UBS takeover of Credit Suisse.

It’s does the market have confidence in our liquidity?” “I can’t see it – yet,” they said, adding that the “worry of contagion may become contagion itself”. They helped to drag the FTSE 100 down by 1.6%. If this spikes upward it can be an indication that investors believe that the entity behind the CDS is more likely to default on its debts. Shares in the German bank fell as much as 14% before recovering some ground to end Friday down 8.6%. Europe’s Stoxx 600 banks index fell 4%, and the UK’s banking index fell more than 3%.

The German institution is “on everyone's minds” as the possible next “domino to fall,” according to one analyst.

About half of the outflows came in the weeks following Silicon Valley Bank’s collapse, according to J.P. banks lost about $1.1 trillion in deposits over the last year, according to a recent J.P. The unexpected failures of mid-sized American banks Silicon Valley Bank and Signature Bank earlier this month sent shockwaves throughout the global financial system, eventually leading to the last-second rescue of Credit Suisse. banks each slid more than 1%, while shares of First Republic, the American bank most often floated as the next institution at serious risk, fell 5%. Holders of $17 billion in risky Credit Suisse bonds were not a part of the rescue deal and were left empty-handed, contributing to the rise in Deutsche Bank credit default swap rates as investors hope to avoid similarly finding themselves out of luck. for its “irresponsible lending practices” in 2006 and 2007 that partially caused the Great Recession, managed to navigate through that controversy by dramatically cutting costs, cutting roughly 20% of its global workforce in a single day in 2018 and successfully turning a profit in its last 10 quarters.

Central banks and regulators had hoped that the Credit Suisse rescue deal would help calm investor jitters about the stability of Europe's banks.

and Europe, it is just how far regulators will always go to ensure depositors are protected," the note said. [underwent a multibillion-euro restructure](https://www.cnbc.com/2019/07/05/deutsche-bank-eyes-huge-multi-billion-euro-restructuring-drive.html) in recent years aimed at reducing costs and improving profitability. Credit Suisse's collapse boiled down to a combination of three causes, according to JPMorgan. relative value)," Autonomous strategists Stuart Graham and Leona Li said in a research note. These figures would not indicate that there is any cause for concern about the bank's solvency or liquidity position. Federal Reserve](https://www.cnbc.com/federal-reserve/) on Wednesday. JPMorgan was unable to determine whether the unprecedented depositor outflows suffered by the Swiss bank had been amassed by themselves in light of SVB's failure, or had been driven by a fear of those outflows and "lack of conviction in management's assurances." These were a "string of governance failures that had eroded confidence in management's abilities," a challenging market backdrop that hampered the bank's restructuring plan, and the market's "fresh and intense focus on liquidity risk" in the wake of the SVB collapse. At the time of SVB's collapse, Credit Suisse was already in the spotlight over its liquidity position and had suffered massive outflows in the fourth quarter of 2022 that had yet to reverse. The lender [recorded annual net income of 5 billion euros ($5.4 billion) in 2022](https://www.cnbc.com/2023/02/02/deutsche-bank-smashes-profit-expectations-in-fourth-quarter-as-higher-interest-rates-bolster-revenue.html), up 159% from the previous year. [emergency rescue](https://www.cnbc.com/2023/03/20/what-ubs-rescue-of-credit-suisse-cs-means-for-markets-and-banks.html) of [Credit Suisse](https://www.cnbc.com/quotes/CSG.N-CH/) by [UBS](https://www.cnbc.com/quotes/0R3T-GB/), in the wake of the collapse of [U.S.-based Silicon Valley Bank](https://www.cnbc.com/2023/03/13/hsbc-buys-silicon-valley-bank-uk-protecting-deposits-.html), has triggered contagion concern among investors, which was deepened by further monetary policy tightening from the [U.S. [wipe out 16 billion Swiss francs ($17.4 billion) of Credit Suisse's additional tier-one (AT1) bonds,](https://www.cnbc.com/2023/03/21/credit-suisse-bondholders-prepare-lawsuit-after-at1-bond-writedown-in-ubs-deal.html) left the market unconvinced that the deal would be sufficient to contain the stresses in the sector.

Europe's banking stocks tumbled Friday as investors acted on their lingering worries that the recent crises at some banks could spill over into the wider ...

The bond would have gradually lost its eligibility as a form of regulatory capital according to rules brought in after the 2008 financial crisis, the source said. Some analysts said investors had been rattled by Deutsche Bank’s announcement Friday that it would pay back one of its bonds five years before its maturity date. The cost of insuring against a possible default by Deutsche Bank on its debt has soared in recent days. [(DB)](https://money.cnn.com/quote/quote.html?symb=DB&source=story_quote_link), plunged as much as 14.5% before paring its losses to close 8.5% lower. Deutsche’s five-year credit default swaps (CDS) skyrocketed to 203 basis points Thursday, according to data from S&P Market Intelligence. The index is down 18% from its high in late February. [emergency takeover](https://edition.cnn.com/2023/03/20/investing/credit-suisse-at1-bond-write-down-explainer/index.html) brokered by the Swiss government. [hike interest rates](https://edition.cnn.com/2023/03/16/economy/european-central-bank-interest-rates/index.html) by half a percentage point, judging that inflation posed a bigger threat to the economy than recent turmoil in the banking sector. Shares in UBS [(UBS)](https://money.cnn.com/quote/quote.html?symb=UBS&source=story_quote_link) and Credit Suisse [(CS)](https://money.cnn.com/quote/quote.html?symb=CS&source=story_quote_link) were 3.6% and 5.2% down respectively. But — after two bank collapses in the United States and an emergency takeover of Credit Suisse this month — some investors may have interpreted the announcement as a sign that Deutsche Bank is nervous about the state of the banking sector and trying to overcompensate, Jonas Goltermann, deputy chief markets economist at Capital Economics, told CNN. [surprise spike in inflation](https://edition.cnn.com/2023/03/23/economy/uk-interest-rates-hike/index.html) last month. [crises at some banks ](https://edition.cnn.com/2023/03/15/economy/european-bank-rules-svb/index.html)could spill over into the wider sector.

Shares in Deutsche Bank, Germany's largest lender, have fallen sharply and dragged down major European banks as fears about the global financial system send ...

International negotiators agreed to those rules following the 2008 global financial crisis triggered by the failure of U.S. failures focused less-friendly attention on banks and a key Credit Suisse investor refused to put up more money. That followed a steep rise in the cost to insure bondholders against the bank defaulting on its debts, known as credit default swaps. banks and jitters about Credit Suisse’s long-running troubles led its shares to tank and customers to pull out their money. Efforts to strengthen banking regulation in recent years “puts us all in a position to say that European banking supervision and the financial system are robust and stable and that we have resilient capitalization of European banks,” Scholz said. authorities for misleading buyers of complex mortgage-backed securities that later went sour. Rising costs on insuring debt were also a prelude to Swiss lender Credit Suisse’s government-backed rescue by rival UBS. However, the selloff of European bank shares “continues to appear more related to lack of confidence than fundamentals.” Davide Oneglia at investment strategy research provider TS Lombard said it wasn’t surprising that “the next bank in the firing line is now Deutsche Bank.” It was associated with Credit Suisse in the past because of “managerial/strategic failures and involvement in many financial scandals” despite its recent profits. The selloff “might also be more emotionally driven, so to speak, rather than based on facts, but this is something that had to be expected” based on its history and performance after the global financial crisis, he said. The market values the bank at less than the assets on its balance sheet, he said: “That means investors are still very worried about what are the risks that the bank has on its balance sheet or its earnings potential going forward, and that’s not good.” “Deutsche Bank has thoroughly modernized and reorganized its business and is a very profitable bank,” Scholz said after a European Union summit in Brussels.

German lender's shares were hit by general loss of confidence, not by any specific failings.

None of which, though, explains why – other than its recently chequered record – Deutsche found itself in the spotlight. [At its worst point, Deutsche was down 14%](https://www.theguardian.com/business/2023/mar/24/european-bank-shares-fall-as-market-jitters-return-deutsche-bank-ubs-ftse-100). The ECB, the US Federal Reserve and the Bank of England raised interest rates this week. At Deutsche, the only minor news from Frankfurt was a decision to buy back a small slice of its debt, which regulators would not have permitted if they were worried about liquidity. Nor, as far as we know, is the European Central Bank in a flap about Deutsche in the way that Swiss authorities were when they advanced a 50bn Swiss franc borrowing facility to Credit Suisse in the days before There is no evidence of a flight of depositors at Deutsche, the factor that really sealed Credit Suisse’s fate.

Shares of Germany's largest bank Deutsche Bank slid on Friday as investors fretted that regulators and central banks have yet to contain the worst shock to ...

The index of top European bank shares [(.SX7P)](https://www.reuters.com/quote/.SX7P) ended down 3.8%. A spokesperson for UniCredit declined to comment. [(JPM.N)](https://www.reuters.com/companies/JPM.N) ended down 1.5%, while Bank of America [(BAC.N)](https://www.reuters.com/companies/BAC.N) climbed 0.6%. "It takes time. The meeting was chaired by U.S. regulators - agreed at a Friday meeting that the U.S. Treasury said the Financial Stability Oversight Council - which comprises the heads of various U.S. In the latest effort to reassure investors, the U.S. [(CRDI.MI)](https://www.reuters.com/companies/CRDI.MI) is leaning towards [repaying a perpetual bond](/markets/rates-bonds/unicredit-leaning-towards-repaying-at1-bond-june-source-2023-03-24/) at the earliest opportunity in June, a source close to the matter told Reuters. [(.SPLRCBNKS)](https://www.reuters.com/quote/.SPLRCBNKS) recovered 1.75%, with PacWest Bancorp rallying more than 3% and First Republic Bank [(FRC.N)](https://www.reuters.com/companies/FRC.N) falling 1.4%. [(DBKGn.DE)](https://www.reuters.com/companies/DBKGn.DE) was thrust into the investor spotlight and [slumped](/markets/deutsche-bank-shares-whipsaw-after-cds-blow-out-2023-03-24/) 8.5% alongside a sharp jump in the cost of [insuring](/markets/deutsche-bank-shares-whipsaw-after-cds-blow-out-2023-03-24/) its bonds against the risk of default. [(SBNY.O)](https://www.reuters.com/companies/SBNY.O) earlier this month.

Why it matters: Nothing suggests Deutsche's solvency is in question, but jittery investors are training a microscope on anything that resembles banking stress.

- “We view this as an irrational market,” Citi analysts including Andrew Coombs said in a note cited by Bloomberg. [according](https://www.ft.com/content/963d8fde-1bd0-4285-98f4-715248119f2a)to the Financial Times. [Credit Suisse fire sale to UBS](https://www.axios.com/2023/03/19/credit-suisse-buyout-banking-crisis-ubs), the [collapse](https://www.axios.com/economy-business/svb-silicon-valley-bank) of Silicon Valley Bank and the [demise](https://www.axios.com/2023/03/12/signature-bank-shut-regulators) of New York's Signature Bank. [noted](https://www.axios.com/2023/03/20/credit-suisse-unavoidably-messy-bank-failure)earlier this week that CoCo bonds are supposed to convert into equity when a bank gets into trouble. [noted](https://www.reuters.com/markets/europe/financial-stocks-drag-european-markets-lower-2023-03-24/), including a Bloomberg [report](https://www.bloomberg.com/news/articles/2023-03-23/credit-suisse-ubs-among-banks-facing-doj-russia-sanctions-probe?leadSource=uverify%20wall)that the Department of Justice is scrutinizing banks that may have helped Russian oligarchs evade sanctions. [Economy & Business](https://www.axios.com/economy-business)

A Deutsche Bank AG flag flies outside the company's office on Wall Street in New York. Mark Kauzlarich | Bloomberg | Getty Images. Check out the companies ...

[Halliburton](/quotes/HAL/), [Occidental Petroleum](/quotes/OXY/), [Diamondback Energy](/quotes/FANG/) and [Exxon Mobil](/quotes/XOM/) each lost about 2%. [Marathon Oil](/quotes/MRO/) and [Devon Energy](/quotes/DVN/) fell about 3%. [JPMorgan Chase](/quotes/JPM/) and [Bank of America](/quotes/BAC/) were down 2% as well. On Friday, Block was [downgraded](https://www.cnbc.com/2023/03/24/atlantic-equities-downgrades-block-after-hindenburg-short.html) to hold by Atlantic Equities on the lack of clarity on its Cash App after Hindenburg's short position. [Block](/quotes/SQ/) — The payment company slid 1.9%, a day after losing nearly 15% when short seller Hindenburg Research [alleged that Block facilitates fraud](https://www.cnbc.com/2023/03/23/block-shares-plunge-after-hindenburg-says-jack-dorseys.html). [First Republic Bank](/quotes/FRC/) fell 3%, while [Western Alliance](/quotes/WAL/), [Zions Bancorporation](/quotes/ZION/) and [Fifth Third](/quotes/FITB/) all lost more than 2%.

What's News · Deutsche Bank Stock Falls on Contagion Fears · First Republic Bank Founder Earned a Big Payday, as Did Family Members · Mideast Challenges Mount for ...

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Deutsche Bank stock slid Friday, while Activision after the U.K. says it's no longer concerned Microsoft's acquisition of Activision would reduce ...

U.S.-listed shares of European banks such as Deutsche Bank, UBS and Credit Suisse were under pressure, while.

[ATVI, +5.91%](/investing/stock/ATVI?mod=MW_story_quote)surged 5.3% toward a near two-year high, after the U.K.’s Competition and Markets Authority (CMA) said it was [narrowing the scope of concerns](https://www.marketwatch.com/story/activision-stock-rises-as-u-k-regulator-reduces-concerns-with-microsoft-acquisition-7114bd62?mod=article_inline)that it had about the company’s pending acquisition by Microsoft Corp. [SQ, -1.94%](/investing/stock/SQ?mod=MW_story_quote)fell 3.6%, continuing a fall from the previous session, after a short seller report from U.S. [MSFT,](/investing/stock/MSFT?mod=MW_story_quote), which was announced more than a year ago. fund Hindenburg Research [published allegations](https://www.marketwatch.com/story/hindenburg-the-firm-that-pressured-adani-says-it-will-publish-new-report-ec1a3041?mod=article_inline)into the parent company of Cash App and Square. Shares of UBS Group AG [UBS,](/investing/stock/UBS?mod=MW_story_quote)down 4.3%, with similar losses for Credit Suisse AG -0.94% [CS,](/investing/stock/CS?mod=MW_story_quote), the troubled Swiss rival that it has agreed to buy. [GS,](/investing/stock/GS?mod=MW_story_quote)have gained 1.6% this week after falling 13.1% the prior seven days; and of Bank of America Corp. -0.72% [BAC,](/investing/stock/BAC?mod=MW_story_quote)were down 5.2% this week after declining 14.6% the previous seven days. [SAN, -1.15%](/investing/stock/SAN?mod=MW_story_quote)down 2.4%. [DB, -3.11%](/investing/stock/DB?mod=MW_story_quote)slid 5.2%, tracking losses in Europe. [JPM, -1.52%](/investing/stock/JPM?mod=MW_story_quote)have lost 1.7% this week after losing 8.7% the seven days prior; of Goldman Sachs Group Inc. [ETNB, -3.96%](/investing/stock/ETNB?mod=MW_story_quote)was down 5.8% after the biopharmaceutical company took advantage of a big rally over the previous two sessions to offer stock for sale to the public, which was [upsized by about 38%](https://www.marketwatch.com/story/89bios-public-stock-offering-upsized-by-38-priced-at-a-4-discount-63d94e02?mod=article_inline)as it priced. [SCHL, -22.27%](/investing/stock/SCHL?mod=MW_story_quote)sank 24.2% after the children’s publishing, education and media company [reported a wider quarterly loss](https://www.marketwatch.com/story/scholastic-stock-sinks-12-after-publishers-quarterly-loss-widens-outlook-lowered-36082408?mod=search_headline&mod=article_inline).

US equities are trading mixed across the board due to a dampened market mood caused by a crisis with Deutsche Bank (DB) being in the spotlight. The sh.

Shares opened down more than 6% on Friday and at the time of writing are trading off -6.8% at $8.99. The author makes no representations as to the accuracy, completeness, or suitability of this information. The US Dollar has lost some strength with Wall Street's main indexes rebounding from opening lows, allowing the pair to limit its losses. The pair remains on track to end the week modestly higher. The author has not received compensation for writing this article, other than from FXStreet. The author will not be held responsible for information that is found at the end of links posted on this page. Federal Reserve officials were one of the reasons that underpinned the greenback, with Bostic and Bullard saying that the US central bank needs to get inflation under control. HE confirmed that signs that the banking system is solid were the main reason to pull the trigger. US equities are trading mixed across the board due to a dampened market mood caused by a crisis with Deutsche Bank (DB) being in the spotlight. Albeit the report was better than January’s data, the cumulative tightening by the Federal Reserve (Fed) could begin to weigh on businesses, as traders are expecting a hard landing by the Fed. The US 10-year Treasury bond yield falls six basis points, down at 3.372%, putting a lid on the greenback gains Sector-wise, the three main drivers of Wall Street are Utilities, Consumer Staples, and Real Estate, each gaining 2.08%, 1.37%, and 1.18%.