News
Deutsche Bank Problems Could Spill Over Into Global Markets
September 30, 2016
On Friday Deutsche Bank shares tumbled more than 7%, falling to a record low in Germany and causing analysts to fear Europe’s banking system may be only one bank failure away from crisis.
“All it takes is for one of the big [banks] to suddenly topple. The flow of credit would freeze up instantly. In an economic system that depends on credit, and whose lifeblood is credit, such an event is a financial crisis,” says Wolf Street editor Wolf Richter, MarketWatch reports.
All the while Deutsche Bank has watched the costs of borrowing rise, and questions grow regarding its ability to pay a potential $14B fine from the US Justice Department. To make matters worse, the bank has fallen over 60% from its 52-week high. [MW]
