Deutsche Bank chief Cryan tries to reassure on bank's strength
The chief executive of troubled Deutsche Bank has emailed the 100,000 staff to reassure them that the German giant's finances are strong.
John Cryan told them the bank had become the object of "hefty speculation" and that "new rumours" were causing the share price to fall.
Deutsche's shares hit new lows on Friday as confidence in the bank continued to falter.
But Mr Cryan said the bank's reserves and profits underlined its strength.
He pointed out that Deutsche had €215bn in reserves and made €1bn in profits for the last six month. At no point in the last 20 years had Deutsche been as strong as it is now, Mr Cryan insisted.
"The release of the memo... seems to have taken the edge off of the German company's dramatic" share price decline, said SpreadEx analyst Connor Campbell.
Deutsche shares were down 5% at midday, having fallen 9% earlier.
That followed a big fall overnight in the bank's Wall Street-listed shares, a drop sparked by reports that some hedge funds had withdrawn money from the bank. $14bn fine
Germany’s economy facing double crisis as regional banks struggle under EU rules
ANGELA Merkel is facing tough choices over structural problems in the economy as Germans head to the voting booths in September.
ANGELA Merkel may have dodged a financial bullet with the Deutsche Bank but her regional lenders are struggling to emerge from troubles which began 10 years ago.
While Deutsche Bank emerged from plummeting share prices last year, the less publicised issues surrounding the country’s Landesbanken appear to be of greater structural concern.
The regional banks are owned by the federal states and were set up in the post-war economy.