Deutsche Bank tumbles as jittery investors seek safer shores | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
July 10, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JULY 10, 2025
Deutsche Bank tumbles as jittery investors seek safer shores

Global Economy

Reuters
25 March, 2023, 03:15 pm
Last modified: 25 March, 2023, 03:33 pm

Related News

  • Deutsche Bank to cut 3,500 jobs and reward shareholders
  • Deutsche Bank to pay $75 million to settle Jeffrey Epstein accusers’ suit - WSJ
  • India says Xiaomi misled Deutsche Bank on 'illegal' royalty payments
  • Former Deutsche Bank co-CEO Anshu Jain dies
  • Deutsche Bank extends profit streak in Q2 but warns on economy

Deutsche Bank tumbles as jittery investors seek safer shores

Reuters
25 March, 2023, 03:15 pm
Last modified: 25 March, 2023, 03:33 pm
A logo of Deutsche Bank AG is seen in Tokyo July 16, 2014. Photo :Reuters
A logo of Deutsche Bank AG is seen in Tokyo July 16, 2014. Photo :Reuters

Shares of Germany's largest bank Deutsche Bank plunged on Friday as investors fretted that regulators and central banks have yet to contain the worst shock to the sector since the 2008 global financial crisis.

Wider indicators of financial market stress were also flashing, with the euro falling against the dollar, euro zone government bond yields sinking and the costs of insuring against bank defaults surging despite assurances from policymakers that the global banking system is safe.

In the latest effort to reassure investors, the US Treasury said the Financial Stability Oversight Council - which comprises the heads of various US regulators - agreed at a Friday meeting that the US banking system is "sound and resilient."

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

World stocks gyrate as bank contagion fears bite

The meeting was chaired by US Treasury Secretary Janet Yellen, whose comments are being closely watched by markets for an indication of how far authorities are willing to go to shore up the banking sector after the collapse of Silicon Valley Bank and Signature Bank earlier this month.

Earlier in the day, Germany's Deutsche Bank DBKGn.DE was thrust into the investor spotlight and slumped 8.5% alongside a sharp jump in the cost of insuring its bonds against the risk of default. The index of top European bank shares ended down 3.8%.

"The market is suspicious, or weary is maybe a better way to put it, that there are more problems out there that have come forth," said Joseph Trevisani, senior analyst at FXstreet.com.

"It takes time. It's going to have to be weeks without any problems in the banking system before markets will be convinced that it's not a systemic problem."

Banking analysts stressed the difference between Credit Suisse AG - which needed a rescue by bigger Swiss peer UBS AG - and Deutsche Bank, saying the German bank boasted strong fundamentals and profitability.

The research firm Autonomous said it was "crystal clear" Deutsche is "NOT the next Credit Suisse," while JPMorgan analysts wrote "we are not concerned" and that Deutsche's fundamentals were "solid".

Paul van der Westhuizen, senior strategist at Rabobank, cited Deutsche's profitability as the "fundamental difference" between the two European banks, given Credit Suisse did not have a profitable outlook for 2023.

"It's a very profitable bank. There's no reason to worry," German Chancellor Olaf Scholz also said.

Still, shares in Germany's largest bank have lost a fifth of their value so far this month and the cost of its five-year credit default swaps (CDS)- a form of insurance for bondholders - jumped to a four-year high on Friday, based on data from S&P Market Intelligence.

Short sellers have made a profit of over $100 million on paper betting against Deutsche Bank stock over the last two weeks, financial data company Ortex said on Friday.

Deutsche Bank declined to comment.

Worries in Europe spilled over to the United States before some bank stocks bounced back. JPMorgan Chase & Co ended down 1.5%, while Bank of America climbed 0.6%.

The S&P 500 regional banks index .SPLRCBNKS recovered 1.75%, with PacWest Bancorp rallying more than 3% and First Republic Bank falling 1.4%.

DILUTION CONCERNS

European banks' Additional Tier 1 (AT1) debt - a $275 billion market of bonds that can be written off during rescues to prevent the costs of bailouts falling onto taxpayers - also came under further selling pressure.

As part of the deal with UBS, the Swiss regulator determined that Credit Suisse's AT1 bonds with a notional value of $17 billion would be wiped out, stunning global credit markets.

Although authorities in Europe and Asia have said this week they would continue to impose losses on shareholders before bondholders, unease has lingered.

"The developments in the AT1 market mean that most European banks are incentivized at this point to issue common equity, which is diluting for shareholders and also the reason why banking stocks are being reset lower," said Peter Garnry, head of equity strategy at Saxo Bank.

In a bid to show it has ample capital while keeping funding costs in check, Italy's UniCredit is leaning towards repaying a perpetual bond at the earliest opportunity in June, a source close to the matter told Reuters. A spokesperson for UniCredit declined to comment.

Amid the market volatility, European policymakers voiced support for their continent's banks, with Germany's Scholz, French President Emmanuel Macron and European Central Bank chief Christine Lagarde all saying the system was stable.

UBS CHALLENGES

Policymakers have stressed the turmoil is different from the global financial crisis 15 years ago, saying banks are better capitalised and funds more easily available.

But the worries spread quickly, and on Sunday UBS was rushed into taking over Credit Suisse after its Swiss rival lost the confidence of investors.

Brokerage group Jefferies said the deal would change an equity story for UBS which was based on a lower risk profile, organic growth and high capital returns.

"All these elements, which is what UBS shareholders bought into, are gone, likely for years," it said.

Top News / World+Biz

Deutsche Bank

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • In terms of stream of education, girls maintained their excellence as well. Photo: TBS
    Lowest SSC pass rate in 17 years as over 6 lakh students fail
  • BNP Secretary General Mirza Fakhrul Islam Alamgir while speaking at a discussion at National Press Club on 10 July 2025. Photo: TBS
    'Backbone of economy will break': Fakhrul says govt should've worked seriously with more qualified people on US tariffs
  • S Alam Group Chairman Mohammed Saiful Alam. Photo: Collected
    Court freezes foreign investments of S Alam Group chairman, family in Singapore

MOST VIEWED

  • Graphics: TBS
    BB raises startup fund limit, drops upper age barrier
  • Workers pack undergarments at the packing section of a garment factory in Ashulia, on the outskirts of Dhaka, Bangladesh, April 19, 2025. Photo: REUTERS/Fatima Tuj Johora
    After US tariffs, jobs hang by a thread in Bangladesh's garments sector
  • Global Islami Bank rectifies 2023 figures, reports Tk2,259cr loss instead of Tk128cr profit
    Global Islami Bank rectifies 2023 figures, reports Tk2,259cr loss instead of Tk128cr profit
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Audit reports of most banks contain cooked up data: BB governor
  • File photo of containers at Chattogram port/TBS
    US buyers push Bangladeshi exporters to share extra tariff costs
  • CA orders law enforcers to complete all election preparations by December
    CA orders law enforcers to complete all election preparations by December

Related News

  • Deutsche Bank to cut 3,500 jobs and reward shareholders
  • Deutsche Bank to pay $75 million to settle Jeffrey Epstein accusers’ suit - WSJ
  • India says Xiaomi misled Deutsche Bank on 'illegal' royalty payments
  • Former Deutsche Bank co-CEO Anshu Jain dies
  • Deutsche Bank extends profit streak in Q2 but warns on economy

Features

Illustration: TBS

Behind closed doors: Why women in Bangladesh stay in abusive marriages

1h | Panorama
Purbachl’s 144-acre Sal forest is an essential part of the area’s biodiversity. Within it, 128 species of plants and 74 species of animals — many of them endangered- have been identified. Photo: Syed Zakir Hossain/TBS

A forest saved: Inside the restoration of Purbachal's last Sal grove

1h | Panorama
Women are forced to fish in saline waters every day, risking their health to provide for their families. Photo: TBS

How Mongla’s women are bearing the brunt of rising salinity

23h | Panorama
Dr Mostafa Abid Khan. Sketch: TBS

Actual impact will depend on how US retailers respond: Mostafa Abid Khan

2d | Economy

More Videos from TBS

SSC and equivalent results released: Pass rate 68.45%, GPA drops by 5

SSC and equivalent results released: Pass rate 68.45%, GPA drops by 5

17m | TBS Today
Islami bank aims to increase deposits to Tk 2 lakh crore by 2025

Islami bank aims to increase deposits to Tk 2 lakh crore by 2025

2h | TBS Programs
The two countries still face major challenges and mutual suspicions

The two countries still face major challenges and mutual suspicions

1h | Others
RMG sector braces for impact as US tariffs hit: Fakhrul

RMG sector braces for impact as US tariffs hit: Fakhrul

2h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net