European Banks Hit as Deutsche Bank Travails Spook Investors
- Deutsche Bank shares tumbled to record low this week
- Negative rates, bad loans, capital concerns dog industry
Gallo: FX Investors Don’t See Deutsche Bank Systemic Risk
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The turmoil swirling around Deutsche Bank AG has brought simmering concerns about the health of Europe’s banks back to a boil.
Germany’s largest lender hit a record low earlier this week, dragging down European financial stocks, after the U.S. Department of Justice requested $14 billion to settle claims tied to fraudulent mortgage-backed securities. While the bank said it won’t pay anywhere close to that amount, the dust-up fueled doubts over its capital levels and refocused investors on the industry’s faults.