- The bank has lost more than 40pc of its value since the start of the year
- A row saw CEO John Cryan ousted and replaced by German Christian Sewing
- Now Deutsche’s U.S. arm has reportedly been added to a ‘problem bank’ register
Shares in ailing Deutsche Bank have tumbled once again
Shares in ailing Deutsche Bank have tumbled once again after it was revealed to have been put on a list of high-risk lenders.
The stock fell 6.5per cent in Frankfurt as sources revealed that Deutsche’s American arm had been added to a ‘problem bank’ register by the US Federal Deposit Insurance Corporation watchdog.
This includes lenders with financial, management or operational issues that are so severe, the authorities believe they could collapse.
Deutsche insisted it is stable and not in any danger but this failed to stop a sharp sell-off.
Shares are now valued at less than €10 (£8.78) each, putting the once-mighty German institution in the realm of ultra- volatile small-cap stocks.
The stock was last at this level in 2016, when there was speculation that Deutsche was about to get a bailout to prevent it from going under.
The bank has lost more than 40per cent of its value since the start of the year amid an ugly boardroom row which saw Yorkshire-born chief executive John Cryan ousted and replaced by German Christian Sewing, who has pledged to cut more than 7,000 jobs and axe the investment bank to save money.
But investors appear to feel his plans do not go far enough and shares have fallen further.
A spokesman said: ‘The ultimate parent of the Deutsche Bank Group, Deutsche Bank AG, is very well capitalised and has significant liquidity reserves. Our principal US banking subsidiary, Deutsche Bank Trust Company Americas, has a very robust balance sheet.’
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