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December 6, 2018updated 14 Dec 2018 11:00am

Deutsche Bank shares plummet in wake of money laundering probe

Deutsche Bank shares slid 2.4% to €7.90, an all-time low, following raids carried out at its German office over money laundering suspicions.

This is the second time that the bank’s shares have slumped below €8. The shares dipped below the figure last week, when the bank’s offices were raided for the second time.

The offices were first raided last month by German authorities over a probe related to the Panama Papers data leak scandal.

The investigation concerns two of the bank’s employees, who allegedly aided money laundering by helping clients set up offshore firms in tax havens. Several business documents were seized during the raids.

According to the Financial Times, the slump was in keeping with the general picture in Europe’s banking industry.

Banking majors BNP Paribas, Société Générale, Commerzbank and Danske Bank all dropped 2% though Deutsche Bank’s slump is said to be more acute.

While Deutsche Bank lost half its value in the calendar year to date, Europe’s Stoxx 600 banking index reported a 23% decrease, the publication said.

The German lender has been going through troubled times with multiple misconduct charges.

Its net income for the third quarter of 2018 stood at €229m. The figure marked a decrease of 65% from €649m a year ago.

The bank also made various management changes in the recent times. It appointed Christian Sewing as its new chief in April 2018, replacing John Cryan.

 

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