Eurogroup chief Jeroen Dijsselbloem has said that US fines on European banks such as Deutsche Bank were eroding the stability of the European finance system.
Deutsche Bank is now trying to negotiate down a threatened $14 billion fine from the US Department of Justice, and raise capital from Germany’s blue chip companies to avoid collapse.
Deutsche Bank’s total value based on its market capitalization or stock price is just $18 billion, although the stock price has been gyrating wildly recently, just 25% more than the fine.
A report Thursday in German newspaper Handelsblatt said that the bosses of several of the country’s blue-chip companies have discussed the buying Deutsche Bank shares and offer a capital injection if needed, sending the share price higher.
Two leading hedge funds which made big bets on Deutsche Bank shares falling are now reducing their “short” positions, in a sign that hedge…
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