Deutsche Bank Shares Slump as Credit-Default Swaps Surge

The headquarters of Deutsche Bank AG reflected in the windows of an office building in the financial district of Frankfurt, Germany, on Thursday, Feb. 2, 2023. Deutsche Bank vowed to increase profit and revenue further this year, after snapping a long streak of market share gains in trading in the final quarter of Chief Executive Officer Christian Sewing's turnaround plan. Photographer: Alex Kraus/Bloomberg , Bloomberg

Ksenia Galouchko, Bloomberg News

Mar 24, 2023

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(Bloomberg) -- Deutsche Bank AG shares slumped and the German lender’s credit-default swaps surged amid wider concerns about the stability of the banking sector. 

The stock dropped 10%. The cost of insuring Deutsche Bank’s debt against default jumped as five-year credit default swaps widened by 24 basis points to 193 basis points on Friday morning, after jumping by the highest amount on record the day before. 

READ: Europe’s Banks Erase Weekly Gains as US Probe Adds to Concerns

Adding to negative sentiment, Bloomberg News reported that Credit Suisse Group AG and UBS Group AG are among the banks under scrutiny in a US Justice Department probe into whether financial professionals helped Russian oligarchs evade sanctions.

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