Eurozone Crisis Looming? Deutsche Bank at FRIGHTENING Levels of Weakness
- Eurozone Crisis Looming? Deutsche Bank at FRIGHTENING Levels of Weakness
by REBECCA PERRING & MONIKA PALLENBERG, 15 Aug 2016, http://www.express.co.uk/
GERMANY’S largest bank is at frightening levels of weakness as it teeters on the edge of a financial crisis due to plunging share prices, experts have warned.
Fears are growing Deutsche Bank that has “lost its way” after being shaken by expensive processes, management turmoil and strict regulation policies by European bureaucrats. One source said: “You can almost cut the fear with a knife – even though, or perhaps because, no one outside of Germany’s largest bank really knows what is happening at the Deutsche Bank. And not knowing spreads fear.
“Here everyone is afraid that the bank will be standing at the door in distress in four months before the general election next year and ask for a recapitalisation by the government.”
The stark warning comes as it emerged the bank has already lost around 40 per cent of its value this year amid investor concerns, which include the current low rate interest and a struggling European economy.
The beleaguered lender was also battered by a shrinking income, after it experienced losses of a frightening 98 per cent, with share prices falling to around €12. Frankfurt Bank Professor Jan-Pieter Krahnen said the bank is “weak and lacks the strategic vision”, adding: “The markets therefore do not trust it.” “Deutsche Bank shares were never as low as they are now.” But opponents warn the battered bank is “too important to fail”.
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