Deutsche Bank AG (NYSE: DB)
Deutsche Bank isn’t having the best of days in the market today. In fact, as soon as the opening bell rang, the stock started making a run for the bottom. Since then, we’ve seen a continuation of downward movement, bringing the stock deeper into the red. Below, we’ll talk about what we’re seeing from DB, why, and what we’ll be watching for with regard to the stock ahead.
What We’re Seeing From DB
As mentioned above, Deutsche Bank isn’t having the best of days in the market today. When the opening bell rang, the stock started to make a quick run for the bottom. Since then, we’ve seen a continuation of declines, causing the losses to grow larger and larger. Currently (12:42), DB is trading at $18.20 per share after a loss of $0.81 per share (4.26%) thus far today.
Why The Stock Is Falling
As usual, when our partners at Trade Ideas informed us that DB was making a run, the CNA Finance team started digging to see exactly what was happening. For some time now, investors have been struck with uncertainty revolving around sales of toxic mortgage debt. The uncertainty pertains to the idea that the settlement could be incredibly large.
Nonetheless, news came out over the weekend that the bank may be settling with the United States Department of Justice relatively soon. Sources close to the story told Reuters that the bank may pay less than the $14 billion in penalties that were originally requested. However, how much lower of a settlement is still unknown.
What We’ll Be Watching Ahead
Moving forward, the CNA Finance team will be keeping a close eye on DB. In particular, we’re interested to see how the settlement ends up. All in all, the number is likely to be large. However, negotiations will likely bring the number below the original request for $14 billion. We’ll keep an eye on the story and be sure to update you as the news breaks!
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