The largest German bank sent warning signals to the market about your fragile financial situation.
The largest German bank has had to divest business units in recent months. Photo File: Reuters
Deutsche Bank could not only face a fine record of 14,000 million dollars by the Department of Justice in the united States.
Now, some clients and hedge funds have reduced their positions in the main private financial institution in Germany.
The news stoked the fear that exists about the Deutsche Bank and led to its shares to plummet on the New York Stock exchange (NYSE). The fall of the papers of the largest German bank was 6.67% and declined to 11.48 dollars for each one.
In Germany, the papers, marked a new historical minimum. The shares fell 7.16% to 10.08 euros.
Millennium Partners, Rokos Capital Management and Capula Investment Management are some of the funds that have moved part of their derivatives portfolio from Deutsche Bank, according to Bloomberg.
Barry Bausano, president of the division of Funds of Coverage of the Deutsche Bank, said in an interview with CNBC that, while there has been some exits of investors, there have also been inputs and is "part of the flows typical".
can A new Lehman Brothers?
"This history of the Deutsche Bank is casting a long shadow over the stock markets," said Peter Kenny, market strategist of Global Markets Advisory Group at Reuters.
"In a way, speaks of the fears about big banks that have serious problems and the last time we heard about it was the financial crisis," he added.
"Our clients are among the most sophisticated investors in the world. We are confident that the great majority of them have an understanding of our stable financial situation, the current macro environment, the process of litigation in the united States and the progress we are making with our strategy," said Michael Golden, a spokesman for the Deutsche Bank.
The bank is in the middle of the negotiation of an agreement with the Department of Justice of the united States on securities backed by subprime mortgages .
The american justice accused of having created financial products from mortgage loans to be insolvent, that contributed to the financial crisis of 2007-2008.
The bank has about 16,000 million dollars in capital and 160,000 millions of dollars of debt.
lose confidence
investors do not trust the statements of the Deutsche Bank about their financial health and are worried about what will happen to the bank and to the breadth of the financial system if it starts running out the capital of that institution, said Quincy Krosby, Market strategist for Prudential Financial, AP.
The financial pressure is hurting the bank teutonic is coming up to the German government, headed by Angela Merkel, who could be forced to rescue him, although John Cryan, CEO of Deutsche Bank, has maintained its stance that does not ask for support in order to be rescued by their government.
"The financial crisis remains in the spirits," recalled Alan Skrainka, Cornerstone Wealth Management (CWM), stating that "a financial system is weak could have negative implications for the financing of growth."
Sale of assets
John Cryan announced in the fourth quarter of 2015, the sale and closure of businesses non-strategic, that will help the bank to reduce costs by 4,000 million euros.
This week, Deutsche Bank announced the sale of its subsidiary british insurance Abbey Life insurance company uk Phoenix Life Holdings by 1,213 million.
in Addition, it is expected the sale of the participation of 19.99% on the chinese bank Hua Xia.
PICC Property and Casualty Co Ltd would pay 3,700 million euros for the stake of Hua Xia says of The Street. (With information from agencies)
valores@eleconomista.mx
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