Is Deutsche Bank The Next Bank That Needs To Rescued?

 

CNBC: Deutsche Bank shares slide after sudden spike in the cost of insuring against its default 

* The German lender’s shares retreated for a third consecutive day and have now lost more than a fifth of their value so far this month. 

* The emergency rescue of Credit Suisse by UBS, in the wake of the collapse of U.S.-based Silicon Valley Bank, triggered contagion concern among investors, which was deepened by further monetary policy tightening from the U.S. Federal Reserve on Wednesday. 

Deutsche Bank shares fell on Friday following a spike in credit default swaps Thursday night, as concerns about the stability of European banks persisted. 

The Frankfurt-listed stock was down 14% at one point during the session but trimmed losses to close 8.6% lower on Friday afternoon. 

The German lender’s Frankfurt-listed shares retreated for a third consecutive day and have now lost more than a fifth of their value so far this month. Credit default swaps — a form of insurance for a company’s bondholders against its default — leapt to 173 basis points Thursday night from 142 basis points the previous day.  

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Update #1: Meltdown in Deutsche Bank Shares Shows Banking Crisis Is Not Yet Over (US News and World Report)  

Update #2: Deutsche Bank, UBS stocks sink as fear of European banking crisis returns (CNN)  

WNU Editor: Concerns on the stability of the global banking system continue .... Moody’s sees risk that U.S. banking ‘turmoil’ can’t be contained (Market Watch). 

Update #3: This is not a sign of stability .... US Banks Are Still Drawing on the Fed for $164 Billion of Emergency Cash (Bloomberg).