German officials could be about to find themselves in an uncomfortable position: Being called on to show they’re ready to rescue a bank in a part of the world where such operations are considered taboo.
Deutsche Bank came under intensified market fire Thursday, the latest salvo being a Bloomberg report that a small number of hedge funds are trimming their sails at the German bank.
In a broad perspective, the move would represent a minor dent in Deutsche’s derivatives clearing business. Barry Bausano, chairman of Deutsche’s hedge fund business, told CNBC on Thursday that while there have been some outflows, there have also been inflows, which he said is “part of the typical ebbs and flows” of the prime brokerage business.
But at a time when investors are fearing what the future holds for the highly leveraged institution, such news is enough to cause ripples. Shares tumbled more than 7 percent in mid-afternoon trading. The plunge took the broader market down as well.
Read the Full Article: Source – CNBC
Time For Truth: (CNBC) – Pressure is building for Germany to show it's ready to rescue Deutsche Bank