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Business

Deutsche admits 'perception issue' as shares slide

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Opening sequence

Business

Deutsche admits 'perception issue' as shares slide

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COMING UP:Deutsche admits 'perception issue' as shares slide

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Transcript

00:00:01
>> Deutsche Bank shares taking another lurch lower on Friday. The bank admitting it has an image problem after reports say some hedge funds have pulled money out. Reuters Breaking views columnist, Dominic Elliott, says it's just a handful of clients so far.>> If this is, say ten, which I think is sort of one upper estimate, it's got 200 in total, so it's not as if this is all of Deutsche Bank's clients suddenly withdrawing cash.
00:00:27
However, this is the start potentially, so that's why I think investors are worried.>> Deutsche says its trading clients remain largely supportive. A statement from the bank on Friday reads, we are confident the vast majority of them have a full understanding of our stable financial position, the current macroeconomic environment, the litigation process in the US and the progress we are making with our strategy.
00:00:53
Germany's biggest lender was slapped with a $14 billion fine from the US Justice Department earlier this month. It claims Deutsche missold mortgage-backed securities before the 2008 financial crisis. The bumper fine, which Deutsche disputes, has triggered jitters about the financial solidity of the bank, but concerns it might be the next Lehman Brothers look overblown.
00:01:14
>> Since then regulators have done a lot to try and improve the resilience of the banking system. We've seen a lot more equity capital raised, that's the first line of defense. We've seen our banks hold a lot more in liquid assets. Deutsche Bank has clearly done that, and we've also got new rules called Balan tools that help to wind down banks and make sure that in the extreme case there would be an orderly resolution of the bank.
00:01:41
>> Once Germany's flagship on Wall Street, Deutsche barely scraped through European stress tests in the summer. The country's lenders all under pressure from record low interest rates. The German government denies any plans for a bailout, but some investors think the chancellor may have few other options left.