Deutsche Bank's Shares Rebound After Earlier Selloff -- 3rd Update

By William Wilkes

FRANKFURT -- Deutsche Bank AG shares rebounded Friday after hitting new multiyear lows earlier on reports that some major clients have moved to withdraw billions of dollars from the bank because of concerns about its stability.

Shares of the German lender gained 6.4% to EUR11.57, recouping earlier sharp losses. They have fallen nearly 50% this year.

In New York, the bank's U.S.-listed shares advanced more than 13% in intraday trade Friday.

The recent rout in Deutsche Bank shares has picked up steam in past sessions, after The Wall Street Journal reported two weeks ago that the U.S. Justice Department had proposed it pay $14 billion to settle a mortgage-securities investigation. The bank has said it was unlikely to pay "anywhere near" that amount.

This week major clients have taken steps to pull billions in securities or cash from the bank, people close to the clients and the bank said late Thursday. Institutions reducing their exposure include AQR Capital Management LLC, Capula Investment Management LLP, Citadel LLC, Luxor Capital Group LP, Magnetar Capital LLC and Millennium Management LLC, these people said.

The amounts of assets either withdrawn or set for withdrawal are in the billions of dollars, a fraction of the hundreds of billions of dollars the bank has in deposits.

Deutsche said in a statement it is confident the vast majority of investors understand its stable financial position and strategy progress.

Rob Copeland

and Jenny Strasburg contributed to this article.

(END) Dow Jones Newswires

September 30, 2016 12:10 ET (16:10 GMT)

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