A new stock market crash for Deutsche Bank leads the shares of the German institute to a new all-time low. In today's morning, thanks to the decline in the banking sector, Deutsche loses more than 5% at 10,7 euros in Frankfurt, making it the worst stock on the Dax. Just a year ago, the bank's shares were worth over 30 euros.
What weighed on Deutsche Bank was the request by the American authorities to close the case on the sale of bonds guaranteed by subprime mortgages. The settlement proposed to the German bank was 14 billion dollars, a figure, of course, that the bank has no intention of paying.
Also the six-monthly report of last July contributed to spreading a certain weakness and skepticism towards the institution, whose profit was down by 98% on an annual basis, at 20 million euros. In addition, 2015 for the institute ended with a monstrous loss of 6,7 billion, due to reserves for legal problems and writedowns. There are no reasons to speculate on the need for state aid for Deutsche Bank.
Meanwhile, the German government is trying to silence the rumors spread by the press according to which the institute has asked for support and help from Chancellor Merkel, who has allegedly replied in the negative. An indiscretion denied first by Deutsche Bank itself and now by the Government. The institute declared itself determined to resolve its problems on its own, excluding, at the moment, the need for a capital increase.
