The fall of 167-year-old Credit Suisse (CSGKF) , which UBS (UBS) – Get Free Report committed to acquire on March 19, has thrown the European banking world in crisis.
Shares of Stoxx Europe 600, which is made up of the 600 biggest banks in Europe, are down 4% from a month ago while German giant Deutsche Bank (DB) – Get Free Report’s stock has been falling for three consecutive days. At one point on March 23, shares plunged by nearly 15% as the cost to insure it against a potential default spiked.
Here’s Why Deutsche Bank Shares Came Tumbling Down
Over the last few years, Deutsche Bank in particular has been through a lot of tumult. While it brought in two years of consecutive profits and 5.7 billion euros ($6.1 billion) in 2022, the eighth-largest bank in Europe had earlier undergone a series of major restructurings under chief executive Christian Sewing.
These include, in 2019, exiting the equities sales and trading business and focusing on German banking as well as cutting 18,000 jobs in 2022.
