Deutsche Bank share price yo-yoing as investors await fine news

Hayley Kirton
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Deutsche Bank Shares Plummet
Shares hit a two week high, but it didn't last long (Source: Getty)

Deutsche Bank's shares clipped a two-week high earlier this morning before dipping back down, as investors anxiously await news on a potential mega-settlement with the US Department of Justice (DoJ).

The bank's shares are currently trading up 0.7 per cent at €11.64. However, at one point this morning, they reached €11.98, perhaps helped by JP Morgan boss Jamie Dimon telling CNBC late last night that there was "no reason" Deutsche could not overcome its problems.

The German giant's share price has been on a rollercoaster ride recently, after taking a plunge last Monday following reports suggesting Chancellor Angela Merkel would not be willing to offer the bank state assistance.

The reports could not have come at a worse time for the bank, as it is currently facing a potential $14bn (£10.8bn) fine from the DoJ for mis-selling mortgage-backed securities.

Read more: Deutsche Bank’s woes signal the fall of the House of Merkel

After recovering mid-week on renewed hopes the German government could be working on a rescue plan after all (even though the reports were later denied), shares plummeted again on Friday morning following a report from Bloomberg revealed several funds had opted to cut their exposure to the bank.

However, shares shot back up again on Friday afternoon, after reports suggested the bank might be closing in on a $5.4bn settlement with the DoJ.

The markets in Frankfurt were closed yesterday because of Unity Day.

However, the shares in New York closed down 0.8 per cent at $12.98.

Deutsche Bank: What you need to know

  1. Timeline: Deutsche's annus horribilis
  2. Why is it in such a state? All the reasons Deutsche is in crisis
  3. There's a new "sick man of Europe": This time the patient is Europe's banking sector

Several big names, including Credit Suisse boss Tidjane Thiam, have stepped forward over the last week to warn Europe's banking sector is far from in good health.

Former chancellor of the exchequer Lord Lamont of Lerwick said he thought "the biggest threat to Europe is the banking crisis", adding the Italian and German lenders were the ones presenting the biggest risks.

Read more: Fresh rumours emerge about bailout-ability of Deutsche Bank

Many banks have been forced to slash jobs as a result of their fading financial health, with recent announcements of four-figure job losses coming from ING and Commerzbank.

It is thought Deutsche Bank itself could be on the verge of confirming 1,000 job losses, which form part of an announcement made by chief executive John Cryan last October to slash 9,000 jobs.

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