Deutsche Bank Shares Drop on Capital Raising Fears
September 26 2016 - 5:50AM
Dow Jones News
FRANKFURT—Shares in Deutsche Bank AG fell sharply Monday, with
investors spooked by the possibility of a capital increase ahead of
a looming fine from the U.S. Department of Justice.
In early trading in Frankfurt, the bank's stock dropped more
than 6% to touch a multiyear low of €10.625, before recovering some
ground to trade at €10.72. The overall market was down about
1.5%.
The U.S. Justice Department has proposed that Deutsche Bank pay
$14 billion to settle a set of mortgage-securities investigations
stemming from the financial crisis, people familiar with the matter
told The Wall Street Journal earlier this month.
Many investors doubt the Justice Department would levy a fine
that size and Deutsche Bank said it had no intention of settling
the claims "anywhere near" that figure.
However, analysts have noted that even a fine of $4 billion
would raise questions about Deutsche Bank's capital position,
potentially prompting a fundraising.
Write to Monica Houston-Waesch at nikki.houston@wsj.com
(END) Dow Jones Newswires
September 26, 2016 05:35 ET (09:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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