Monday 3 October 2016 4:00 pm

Back down it goes: Deutsche Bank share price drops in US

Deutsche Bank's US-listed shares have fallen three per cent, just hours after the market opened.

Shares in the German bank plummeted last week, after various reports emerged doubting Chancellor Angela Merkel's appetite for state assistance, despite the lender facing a potential $14bn (£10.8bn) fine from the US Department of Justice (DoJ) for mis-selling mortgage-backed securities.

However, share price recovered somewhat on Friday afternoon, when it was reported Deutsche Bank was closing in on a $5.4bn settlement with the DoJ.

Reports have also emerged suggesting the DoJ was keen to settle with Deutsche Bank, alongside Credit Suisse and Barclays, on the issue before the US presidential elections in November, but the DoJ has declined to comment on the issue. 

Read more: Europe’s banking woes are inherently political

Investors are proving again today that they are still nervous to know the final outcome of the saga, as the New York listed shares have dipped 3.7 per cent to $12.61 at time of writing.

Shareholders with a closer eye on the Frankfurt market have had a welcome break today, as the markets are closed for Unity Day. Shares closed up 6.4 per cent up at €11.57 on Friday, as the news of the potentially lowered fine helped to boost confidence, but they did at one point dip below the symbolic €10 mark. 

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