¿What about the Deutsche Bank of Germany? This Friday March 24 report a drop of 14% and Concern grows in Europe.
This Friday, March 24, the Deutsche Bank of Germany presented a resounding fall in its shares on the Stock Market, just a few days after the fall from Swiss credit and the two US banks that closed.
However, it is not the only bank in Europe that presents danger, as at least 6 banks from different European nations have presented losses in the value of their shares.
Deutsche Bank of Germany falls public after major announcement
According to international media, this Friday, March 24, the shares of Deutsche Bank of Germany plummeted 14% on the Stock Market.
Said decline occurred after the announcement of the German bank about its plan to amortize one thousand 500 million dollars of subordinated debt on May 24, before its maturity in 2028.
The bank’s decision generated uncertainty among its clients, who, given the current context facing the banking sector in Europe and the United States, decided to purchase credit default swaps (CDS) insurance to cover themselves against possible non-payment by the firm.
However, said CDS hit all-time highs in Deutsche Bank history from Germany, standing at 434 points.
According to the fund and banking journalist, Manuel Mendieta, this type of financial derivative is commonly used as a thermometer to assess the bankruptcy risk of an entity.
Banks from other European nations also show decline
It should be noted that the Deutsche Bank of Germany is not the only bank that presents a unfavorable impact on the Stoxx Europe 600 index, for the following declines were noted in the banks of Europe:
- the bank of germany Comerzbank presented a drop of 8.5%
- Société Générale and BNP Paribas of France fell 6.7 and 8 percent respectively
- The bank UBS of Zurich, Switzerland fell 7%
- The Italian dependencies Intesa and Unicredit lose 3.77% and 4.79%, respectively
- Those of Nordea (Norway), 9.7%
- Dutch ING fell 4.7 percent
- While in Spain Sabadell fell 7%, Santander and BBVA 5%, and CaixaBank 4 percent