Deutsche Bank shares sank on the day after the 149-year-old bank announced its latest, and deepest, restructuring effort. The stock market reaction signals that investors are uncertain about a turnaround plan that will see the lender slash 18,000 jobs and retreat from operations around the world.
The German bank’s shares fell 5.7%, to €6.77, at the time of writing, not far off the all-time low of around €6.00 set last month. Since then, Deutsche Bank’s stock had been rising steadily, including in the early hours of trading today, as investors cheered the weekend announcement of CEO Christian Sewing’s ambitious plan to put the company on solid footing after years of losses and failed turnaround efforts.
But that optimism faded as traders and analysts pored over the details of Deutsche’s strategy. The company’s contingent convertible bonds, a type of debt that will absorb the first losses should the bank struggle to pay its debts, also drifted lower in price.