{"id":19095,"date":"2023-03-25T06:41:13","date_gmt":"2023-03-25T06:41:13","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/shares-of-deutsche-bank-other-euro-lenders-tumble-finance-bitcoin-news\/"},"modified":"2023-03-25T06:41:13","modified_gmt":"2023-03-25T06:41:13","slug":"shares-of-deutsche-bank-other-euro-lenders-tumble-finance-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/shares-of-deutsche-bank-other-euro-lenders-tumble-finance-bitcoin-news\/","title":{"rendered":"Shares of Deutsche Bank, Other Euro Lenders Tumble \u2013 Finance Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Deutsche Bank shares plunged on Friday, along with the stocks of other European banks, amid investor concerns over the stability of the global banking sector. The drop comes in the aftermath of the recent emergency rescue of Credit Suisse and follows losses in U.S. banks on Thursday. <\/strong><\/p>\n

Deutsche Bank Credit Default Swaps Jump to 4-Year High<\/h2>\n

Shares of European banks, most notably Deutsche Bank<\/a>, fell before the weekend amid persisting concerns among investors about the state of the banking industry on the Old Continent, across the Pond and beyond.<\/p>\n

Having lost a fifth of their value since the start of the month, Deutsche shares plunged almost 15% on March 24, their lowest level in five months, Reuters pointed out. The report noted that in just one week, Germany\u2019s largest lender has seen $3 billion wiped off its value.<\/p>\n

The drop followed the significant increase in the cost of ensuring the bank\u2019s debt against the risk of default. Deutsche\u2019s credit default swaps reached over 220 basis points, the most since late 2018. Two days ago, they were at around 140 basis points.<\/p>\n

The swaps rose for other leading European banks as well. The shares of Commerzbank, another German banking giant, France\u2019s Societe Generale and the Spanish Banco de Sabadell also saw steep declines on Friday, Bloomberg reported.<\/p>\n

Deutsche bank has been in the spotlight after the recently announced government-supported takeover<\/a> of Switzerland\u2019s Credit Suisse by rival UBS. Both groups are now under scrutiny in connection with a U.S. Justice Department probe into whether bankers helped Russian oligarchs evade Western sanctions.<\/p>\n

Meanwhile, the Stoxx 600 index of European banks, not including Credit Suisse or UBS, was down over by over 5%, nearing a monthly decline of almost 20% after one of its most volatile weeks of trading over the past year.<\/p>\n

Deutsche Bank was the biggest loser on Friday, prompting a reaction from German Chancellor Olaf Scholz who rejected comparisons with the case of Credit Suisse. At a summit in Brussels, he was quoted by the Financial Times as stating:<\/p>\n

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Deutsche Bank has fundamentally modernized and reorganized its business and is a very profitable bank. There is no reason to be concerned about it.<\/p>\n<\/blockquote>\n

The latest negative development in Europe follows a selloff in U.S. banks on Thursday, amid turmoil among regional lenders. It happened despite Treasury Secretary Janet Yellen\u2019s statement<\/a> that regulators would be prepared to further protect deposits, if needed, in order to prevent contagion.<\/p>\n

European financial authorities have been assuring that banks are better capitalized and regulated now than before the beginning of the previous global financial crisis. This year\u2019s troubles started with bank collapses<\/a> in the U.S., including those of crypto-friendly Silvergate Bank and Silicon Valley Bank.<\/p>\n

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\nTags in this story
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Bank<\/a>, Banking<\/a>, Banking Crisis<\/a>, banking giant<\/a>, banks<\/a>, collapse<\/a>, collapses<\/a>, Crypto<\/a>, decline<\/a>, deutsche<\/a>, Deutsche Bank<\/a>, drop<\/a>, Europe<\/a>, european<\/a>, german<\/a>, Germany<\/a>, Janet Yellen<\/a>, lenders<\/a>, Olaf Scholz<\/a>, regional banks<\/a>, shares<\/a>, Societe Generale<\/a>, stocks<\/a>, U.S.<\/a><\/div>\n<\/div>\n

Do you expect the current banking crisis to deepen further? Tell us in the comments section below. <\/strong><\/em><\/p>\n

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\nLubomir Tassev <\/h6>\n

\nLubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens\u2019s quote: \u201cBeing a writer is what I am, rather than what I do.\u201d Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Vytautas Kielaitis \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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