Deutsche Bank chief Cryan tries to reassure on bank’s strength
The chief executive of troubled Deutsche Bank has emailed the 100,000 staff to reassure them that the German giant’s finances are strong.
John Cryan told them the bank had become the object of “hefty speculation” and that “new rumours” were causing the share price to fall.
Deutsche’s shares hit new lows on Friday as confidence in the bank continued to falter.
The fall followed reports that some hedge funds had withdrawn money.
The share price fall yesterday followed a sharp drop overnight in New York trading, and take the bank‘s share price below €10 for the first time.
Mr Cryan said that at no point in the last 20 years had Deutsche Bank been as strong as it is now.
But Deutsche Bank is under the most pressure of any bank since the financial crisis.
Investors are increasingly worried about the financial health of the bank, which faces a $14bn fine in the US for mis-selling mortgagebacked bonds before the financial crisis of 2008.
The bank’s shares have been falling steadily from a recent high of €27.80 last November, but at their peak in May 2007, before the start of the banking crisis, they were valued at almost €100.
Deutsche’s woes hit bank shares across Europe, with Barclays and Royal Bank of Scotland falling more than 4% at the start of trading in London.