Mark Whitehouse, Columnist

Deutsche Bank Puts Safeguards to the Test

Markets aren’t showing much faith in regulators' ability to prevent financial contagion.

Is it contagious?

Photographer: Krisztian Bocsi/Bloomberg
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The travails of Deutsche Bank, which has seen its share price plunge to record lows amid concerns about the size of a looming U.S. fine, raise a crucial question: If the German bank needed salvaging, could authorities pull it off without damaging the rest of the financial system?

Judging from the reaction so far, markets aren't so sure.