Storied German lender Deutsche Bank had just been getting back on its feet after years of scandals -- but now faces new turbulence after its shares tanked Friday amid concerns of a widening banking sector crisis.
Deutsche Bank ranked as the eighth largest in Europe last year, with total assets of 1.3 trillion euros, according to S&P Global Market Intelligence.
Its strength helped it survive the 1931 banking crisis, triggered by inflation and the shutdown of international markets to German businesses. After repeated scandals stemming from its investment banking division, Deutsche Bank had to undertake two major restructuring drives before it really began to turn a corner.
Then in July 2019, Deutsche Bank unveiled a second, more far-reaching restructuring plan -- 18,000 jobs were to be axed by 2022 and it would retreat from most share trading activities and refocus on its German and European business.The new strategy largely paid off, with the bank reporting in 2022 its best profit for 15 years, more than double that of the previous year.
Its shares tumbling as much as 14 percent on Friday as the cost of insuring against the bank defaulting on its debt jumped.
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