Deutsche warns on bank losses
Deutsche Bank said European banks could face losses of between €50bn and €75bn if the debt crisis in Greece continues to escalate and banks are forced to take a “haircut” on Greek sovereign debt.
Germany’s flagship lender has limited primary exposure to Greece, but faces “potential risk of tertiary market impact due to contagion,” thanks to exposure to other vulnerable countries such as Spain, and Italy, Deutsche Bank said. Deutsche Bank said it has “negligible” exposure to Greek debt but outlined potential risks in a “contagion scenario impact analysis” published yesterday. As a “tertiary” market impact, the crisis could lead to “severe contagion globally”, it warned.