Shares of the European bank Deutsche Bank updated the historical low, this happened two months after a slight rebound from its previous low. Recent growth has come amid rumors of a reload of Germany’s largest financial conglomerate. At the time of this writing, the bank’s shares fell 94% from their peak in 2007.
It is worth noting that Deutsche Bank is not the only European bank that is going through hard times, for example, the securities of Spanish Bankia and Banco Sabadell and Italian UniCredit are also at or near historic low. In addition, the German Commerzbank also reached a new low.
The crisis of European banks is a consequence of the recent change in interest rates. In addition, there are a number of reasons why stocks fell to their lowest levels. For example, investigations of major financial crimes worth billions of euros, as well as the slow reaction of the EU to the financial crisis.
These and many other problems are being felt now, when the European Central Bank intends to reduce already negative interest rates further, and not raise them, as the markets had expected until recently. Bloomberg concludes that this year banks became the worst industry in Europe, and Deutsche Bank is far from the worst performer.