Deutsche Bank closed down 6.71% at $11.47 per share following a report from William Canny at Bloomberg suggesting that a number of hedge funds clients have started shifting business to other banks.
“We are confident that the vast majority of them have a full understanding of our stable financial position, the current macroeconomic environment, the litigation process in the U.S. and the progress we are making with our strategy,” Michael Golden, a Deutsche Bank spokesman, told Bloomberg.
Thursday’s slide marked the seventh decline in 10 days, as worries persisted over the health of the German investment bank.
On Monday, shares of Deutsche Bank fell to a record low amid concerns the bank would have to pay $14 billion to US authorities in legal costs and settlements over an investigation into sales of mortgage-backed securities.
In a memo to employees, the bank said that it has “no intention to settle these potential civil claims anywhere near the opening position of $14 billion” and that it had no plans to raise capital. Additionally, the German government has said that it will not bailout out the bank.
Deutsche Bank is not the only German lender to make headlines as of late. On Thursday, Commerzbank, Germany’s second-largest bank, said it was eliminating about 10,000 jobs, or more than 20% of its labor force, in a restructuring effort.