Deutsche Bank AG (USA) DB 0.44% shares fell 6.6 percentThursday following reports that a small number of hedge funds are reducing their positions in Europe’s largest investment bank. Deutsche Bank shares are now down 52.3 percent in 2016 and are threatening to dip into the single-digits.
The Financial Select Sector SPDR Fund XLF 0.15% is down about 20 percent year-to-date.
Deutsche Bank’s decline is also sparking comparisons to Lehman Bros, and speculation about the systemic risk involved in a potential Deutsche Bank collapse. Pressure is mounting on the German government to step in and commit to bailing out the ailing bank if things get worse.
Deutsche Bank’s U.S. ADR traded 51.6 million shares in Thursday’s session, its highest one-day volume ever. The stock’s 6.6 percent decline is its third daily loss of at least 6 percent this month.
The stock fell 8 percent on September 15 following a massive $14 billion penalty imposed by theU.S. Justice Department related to the company improperly selling mortgage-backed securities. Deutsche Bank had anticipated a fine, but nothing nearly as large as $14 billion.
Deutsche Bank shares declined another 7.0 percent on Monday as fear spread about the company’s solvency.
These declines pale…
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