Shares of Deutsche Bank have hit record lows this week on mounting worries about the struggling German lender, and they were dropping again on Thursday.
On Thursday, a Bloomberg report raised concerns that a handful of funds are less willing to do business with the struggling firm. The report, citing a source and review of an internal document, said that a small number of the hedge funds that do derivatives business with the German bank have cut their exposure.
Deutsche Bank’s U.S.-traded shares dropped after the report and were on pace to close at a record low.
It’s been a tough two weeks for Deutsche Bank: The German lender has been hit with billions in fines from the U.S. Justice Department — though most market watchers expect the total penalty being floated by the United States is likely to be reduced — and there have also been reports that the German government won’t be helping the ailing bank.
Since a peak in July 2015, shares have fallen more than 65 percent and the stock has erased more than half of its market value, from nearly $50 billion to about $16 billion this week. Meanwhile, net revenue fell almost 21 percent in the first half of this year from last year, according to the company’s interim report.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.