On Friday Deutsche Bank shares tumbled more than 7%, falling to a record low in Germany and causing analysts to fear Europe’s banking system may be only one bank failure away from crisis.
“All it takes is for one of the big players to suddenly topple. The flow of credit would freeze up instantly. In an economic system that depends on credit, and whose lifeblood is credit, such an event is a financial crisis,” says Wolf Street editor Wolf Richter, MarketWatch reports.
All the while Deutsche Bank has watched the costs of borrowing rise, and questions grow regarding its ability to pay a potential $14B fine from the US Justice Department.
To make matters worse, the bank has fallen over 60% from its 52-week high
European investors should put their eyes in USA opprtunities.
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