Mar 24, 2023
By Jeremy Logan
Shares in Germany’s largest lender, Deutsche Bank, have fallen sharply and dragged down major European banks as concerns about the global financial system continue to shake the markets.
In midday trading in Frankfurt, shares of Deutsche Bank fell 14%.
The decline comes after a sharp increase in the price of credit default swaps, which insure bondholders against the bank defaulting on its debts.
Increasing debt insurance costs were also a precursor to a government-backed buyout of rival UBS by Swiss lender Credit Suisse.
The selloff of the German lender comes despite it having capital reserves well beyond regulatory requirements and five straight quarters of profits.
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