Shares Of Deutsche Bank Plunge Amidst Police Raids

Photo by Nordenfan from Wikimedia Commons

The shares of Deutsche Bank plunged to an all-time low last Wednesday morning before rallying. It comes amidst an investigation into a potential case of money laundering.

The shares of the company dropped by 2.4 percent to €7.90 (£7.03) as the trading opened last Wednesday. It is the second time that they have fallen below €8 after last Friday when the prosecutors raided the offices of the lender for a second day.

Police officials were searching for evidence that are connected to the revelations of the so-called Panama Papers regarding two employees that had set up offshore companies to enable its clients to launder money through.

However, the shares of the company was later able to rally. It soared by 0.65 percent up, at $8.11.

The bank has been gravely affected by a series of scandals this year. It also faces fresh questions regarding its alleged role as a conduit for dirty money that is processed via Danske Bank, a Danish lender.

At large, the banking sector of Europe has been subject to a decline in shares last Wednesday morning.

Societe Generale, Commerzbank, and BNP Paribas were all down by approximately two percent on Wednesday morning, however, just like Deutsche Bank they also later rallied.

Reportedly. during the raids on Deutsche Bank, the police searched the offices of all the board members of the lender, including the office of Christian Sewing, the boss of the company.

Sewing needed to fend off the suggestions of a potential merger over the weekend in the wake of the raids. He said that he saw no indication of a tie-up with Commerzbank, its German rival or the UBS of Switzerland.

He said that he was not concerned of the board office raids. He added: “I don’t have a problem with that. I want this matter to be cleared up as soon as possible.”