Deutsche Bank plunges 10%, reviving fears of a European expansion of the banking crisis despite ECB measures
The share price of the main banks of the Old Continent. fell sharply again on Fridaysuggesting that recent interventions by financial authorities have not calmed investors’ nerves, after the major central banks have continued to raise interest rates despite the turmoil triggered by the failure of banks in the United States and the bailout of Credit Suisse.
Thus, the Euro Stoxx 600 index for the banking sector was down more than 3% before reaching mid-session, with. Deutsche Bank leading the decliners, with a drop that at some points in the morning was close to 14%.
Germany’s largest bank, whose The cost of credit default swaps (CDS) insurance has risen sharplyannounced this Friday its intention to early redeem $1.5 billion (1.379 billion euros) in subordinated tier 2 fixed-rate debt maturing in 2028 on May 24, 2023 at 100% of its principal amount, together with accrued interest up to (but excluding) the redemption date.
On its side, Scandinavian Nordea was down more than 7% and. Switzerland’s UBS was trading down 5.5%.while the shares of Germany’s Commerzbank and France’s Commerzbank Société Générale were down almost 5%, respectively, and those of the Italian UniCredit and the Gaul BNP Paribas were each down more than 3%. Likewise, the shares of other large European banks such as ING, Intesa Sanpaolo and ABN Amro fell by more than 2%.
In the case of Spain, the Sabadell led the declines at 11:00 a.m. with a 6.85% drop, followed by Unicaja (-5,62%), BBVA (-5,35%), Banco Santander (-4,97%), CaixaBank (-4,81%) y Bankinter (-4,71%).
