Deutsche Bank shares fall following restructuring revelation and fresh legal case fears

 
Oliver Gill
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Under the restructuring announced by boss John Cryan, Deutsche will be split into three divisions (Source: Getty)

Deutsche Bank shares fell over six per cent in early trading this morning after yesterday confirming plans to launch a €8bn (£6.9bn) rights issue and reports it is facing new legal action over foreign exchange trading practices.

Shares in lender opened at €17.90, down from Friday's of €19.14. They have subsequently bounced back regained some lost ground, trading at €18.14 per share.

Read more: Deutsche Bank to raise €8bn through rights issue

Yesterday, the lender revealed a restructuring plan that included a raft of financial and operational changes.

The reorganisation plan will see Deutsche Bank split into three divisions: private banking and wealth management; asset management; and corporate and investment banking.

Part of its asset management will be floated but it will retain its retail arm Postbank after reports it was preparing to sell it.

The final piece of the jigsaw is its share issue, set to be put on offer between 21 March and 6 April. A raft of the world's biggest investment banks has underwritten the deal.

Last look

Meanwhile, Sky News reported the German giant is also to be slapped with a fresh lawsuit from clients claiming they have lost millions of dollars after traders are exploited time gaps between client orders being placed and executed.

Read more: Chief executive of Deutsche Bank Israel arrested

US-based law firm Scott & Scott will announce today it will pursue a claim against the alleged practices, known as "last look" trades.

Deutsche Bank will not be the only bank to put under the microscope for such trading activities. Barclays was stung with $150m (£121m) fine by US authorities in 2015 for last look trading, while HSBC, RBS and JP Morgan have shelled out to UK authorities.

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