Wednesday 5 December 2018 1:02 pm

Deutsche Bank shares hit rock-bottom in the wake of police raids

Deutsche Bank shares dropped to an all-time low this morning before rallying, amid an investigation into possible money laundering.

Shares dropped 2.4 per cent to €7.90 (£7.03) as trading opened today, the second time they have dropped below €8 after Friday, when prosecutors raided the lender’s offices for a second day.

Police were looking for evidence linked to the so-called Panama Papers revelations that two employees had set up offshore firms for clients to launder money through.

Shares later rallied, however, and were 0.65 per cent up, at $8.11.

The bank has been hit by a series of scandals this year, and faces fresh questions over its alleged role as a funnel for dirty money processed via Danish lender Danske Bank.

The European banking sector at large has been subject to a drop in shares this morning.

BNP Paribas, Societe Generale and Commerzbank were all down around two per cent this morning, but like Deutsche Bank they later rallied.

During the raids on Deutsche, police reportedly searched the offices of all the lender’s board members, including that of company boss Christian Sewing.

Sewing had to fend off suggestions of a possible merger over the weekend in the wake of the raids, saying he saw no indication of a tie-up with German rival Commerzbank, or Switzerland’s UBS.

He said he was not concerned about the board office raids. “I don’t have a problem with that,” he said. “I want this matter to be cleared up as soon as possible.”