Deutsche Bank chief Cryan tries to re­as­sure on bank’s strength

Malta Independent - - WORLD -

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.

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