Deutsche Bank's Shares Rebound After Earlier Selloff -- 3rd Update
September 30 2016 - 11:25AM
Dow Jones News
By William Wilkes
FRANKFURT -- Deutsche Bank AG shares rebounded Friday after
hitting new multiyear lows earlier on reports that some major
clients have moved to withdraw billions of dollars from the bank
because of concerns about its stability.
Shares of the German lender gained 6.4% to EUR11.57, recouping
earlier sharp losses. They have fallen nearly 50% this year.
In New York, the bank's U.S.-listed shares advanced more than
13% in intraday trade Friday.
The recent rout in Deutsche Bank shares has picked up steam in
past sessions, after The Wall Street Journal reported two weeks ago
that the U.S. Justice Department had proposed it pay $14 billion to
settle a mortgage-securities investigation. The bank has said it
was unlikely to pay "anywhere near" that amount.
This week major clients have taken steps to pull billions in
securities or cash from the bank, people close to the clients and
the bank said late Thursday. Institutions reducing their exposure
include AQR Capital Management LLC, Capula Investment Management
LLP, Citadel LLC, Luxor Capital Group LP, Magnetar Capital LLC and
Millennium Management LLC, these people said.
The amounts of assets either withdrawn or set for withdrawal are
in the billions of dollars, a fraction of the hundreds of billions
of dollars the bank has in deposits.
Deutsche said in a statement it is confident the vast majority
of investors understand its stable financial position and strategy
progress.
Rob Copeland
and Jenny Strasburg contributed to this article.
(END) Dow Jones Newswires
September 30, 2016 12:10 ET (16:10 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Deutsche Bank Aktiengese... (NYSE:DB)
Historical Stock Chart
From Apr 2024 to May 2024
Deutsche Bank Aktiengese... (NYSE:DB)
Historical Stock Chart
From May 2023 to May 2024