BERLIN: Shares in Deutsche Bank fell heavily Friday on the lender’s surging cost of default cover, reigniting fears about a widening banking sector crisis.
Germany’s biggest lender dropped more than 14% on the Frankfurt Stock Exchange in early trade, before clawing back ground to close 8.5% lower, at €8.54 (314 baht).
The cost of insuring the bank’s debt against a risk of defaulting — so-called credit default swaps — has surged as investors fret about the banking sector’s health.
Long-troubled Deutsche Bank has become the focus of investor concerns after the collapse of three regional US lenders and the enforced takeover of Credit Suisse by rival UBS…
