Deutsche Bank Shares Tank on $14 Billion US Claim
Deutsche Bank shares were down almost eight percent in early trading at the Frankfurt Stock Exchange on Friday, weighing heavily on the performance of Germany’s blue-chip DAX index.
The stock nosedived on the news that the US Justice Department had proposed a $14 billion (12.4 billion euros) settlement related to the bank’s dubious handling of mortgage-backed securities which had collapsed in 2007/2008, unleashing the financial crisis.
Deutsche Bank suffered enormous selling pressure on Friday despite its claim that the US demand was only an “opening position” and that Washington was asking for a counterproposal from the bank.