Deutsche Bank fears rattle stock markets; UK growth revised up – business live

Deutsche Bank fears rattle stock markets; UK growth revised up – business live

Goldman Sachs estimates that Deutsche Bank will end up paying between $2.8bn and $8.1bn, rather than the $14bn figure from the Department of Justice. But its that there is some urgency to resolve the issue.

The volatility in Deutsche Bank’s shares over the last day or so proves the point. Goldman said:

We believe Deutsche Bank’s liquidity position…is stable – and further strengthened by ECB funding backstops, which remain available to all Eurozone banks. This said, the reaction of (admittedly less liquid) the ADR to a single piece of news flow demonstrates the extent of concern in the market. As we highlighted previously, as market concerns intensify, achieving resolution to litigation, and thus capital concerns, is important.

Analysts are taking a positive view of the Eurogroup president’s earlier comments that Deutsche Bank would have to stand on its own. Connor Campbell at Spreadex said:

Despite, or perhaps because of, Jeroen Dijsselbloem coming out to state that Deutsche Bank won’t receive state aid the German giant has managed to claw its way back into the green this afternoon.

One could argue that the comments from Dijsselbloem prove that the financial health of Deutsche Bank isn’t as bad as suspected. For if it the financial firm was on its last legs there is no way the Eurozone chiefs wouldn’t find a way of preventing the collapse of the region’s biggest lender.

Deutsche Bank’s US shares are sharply higher after Thursday’s sell-off, up around 6% at the moment.

Deutsche Bank fears rattle stock markets; UK growth revised up – business live

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