Deutsche Bank AG shares slumped and the German lender’s credit-default swaps surged amid wider concerns about the stability of the banking sector.
(Bloomberg) — Deutsche Bank AG shares slumped and the German lender’s credit-default swaps surged amid wider concerns about the stability of the banking sector.
The stock dropped 10%. The cost of insuring Deutsche Bank’s debt against default jumped as five-year credit default swaps widened by 24 basis points to 193 basis points on Friday morning, after jumping by the highest amount on record the day before.
READ: Europe’s Banks Erase Weekly Gains as US Probe Adds to Concerns
Adding to negative sentiment, Bloomberg News reported that Credit Suisse Group AG and UBS Group AG are among the banks under scrutiny in a US Justice Department probe into whether financial professionals helped Russian oligarchs evade sanctions.
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