At the beginning of December 2018, the CEO told a German newspaper that the shares should recover soon as Deutsche Bank heads for its first annual profit in four years. He said the bank had previously investigated the issues raised by the Panama Papers in cooperation with supervisors, and had assumed the matter was closed.
However, the shares fell to a record low amid the prospect of yet another costly probe, this time related to disclosures from the Panama Papers, according to Bloomberg. Days earlier, the company had faced another money laundering scandal at Danske Bank.
The events threaten to accelerate a negative feedback loop of falling revenue, declining morale and rising funding costs. While many of Deutsche Bank’s largest investors, contacted before the raids, said they still back Chief Executive Officer Christian Sewing, they argued he only has another quarter or two to prove his approach can work, the online publication continues.
At the same time, strategic alternatives are getting ever more painful for shareholders because of the low stock price.
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