Deutsche Bank’s announcement that it is short €29 billion has Germans fretting. If the country’s biggest bank is in trouble, what does that mean for the others? Commentators think it could be bad news.
Josef Ackermann’s comments in a television interview aired on Thursday caused Deutsche Bank’s stock to shed 3 percent of its value.
The bad news from Germany’s banking sector just keeps on coming. First it was a couple of regional banks that ran into cash troubles as a result of the subprime crisis in the United States (more…).Then, on Thursday, banking giant Deutsche Bank admitted that it too had issues stemming from the waves washing over from the American housing market. CEO Josef Ackermann told German television that his bank had “made mistakes” (more…) and that some €29 billion in credit agreements would have to be reassessed.