Sharp Decline in Deutsche Bank Shares!

Today, shares of Germany’s Deutsche Bank fell 14%, and other lenders also suffered significant losses. Some of Deutsche Bank’s bonds were also sold.

Sharp declines in banking stocks are being experienced in Europe. The hurried takeover of Credit Suisse and the bankruptcies of two US banks triggered concerns that panic could not be controlled. Shares of Germany’s Deutsche Bank fell 14% today, and other lenders also suffered significant losses. Some of Deutsche Bank’s bonds were also sold. This has raised concerns about Europe’s financial stability.

Germany’s largest bank, Deutsche Bank, lost $3 billion in market value in just one week. Additional Tier-1 dollar bonds fell to 70.054 cents, down about 6 cents against the dollar, pushing yields up to 27%, according to Tradeweb data. This is almost three times the level of just two weeks ago. Shares of Deutsche Bank, located in Frankfurt, fell 8.5%, while shares of Commerzbank also fell 5.5%. Additionally, French Société Générale and Bank of Ireland shares fell 6.1% and 5.4%, respectively.

The FTSE 100 index in London closed down 1.3%, but German and French stock markets experienced even sharper declines. European financial services firms generally declined after a record increase in insurance costs against default risk. In March, these firms lost one-fifth of their value.

The cost of insuring Deutsche Bank’s debt against default risk reaching its highest levels in four years highlighted concerns about Europe’s stability. However, Autonomous, an independent researcher, said, “To be clear, Deutsche Bank is not the next Credit Suisse.”

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