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Deutsche Bank Reckons With a New Reality

Sep 30, 2016 | 00:27 GMT

Deutsche Bank Reckons With a New Reality
Deutsche Bank's share prices have been steadily falling over the past several years, but the latest drop has set off alarm bells.

(DANIEL ROLAND/AFP/Getty Images)

Germany's banks have had a tough week. Deutsche Bank, the country's largest lender, saw its share price drop sharply on Monday and Tuesday following news of a possible $14 billion fine from the U.S. Department of Justice for misselling mortgage-backed securities before the 2008 crisis. On Thursday, Germany's second-largest lender, Commerzbank, announced plans to cut nearly 10,000 jobs and scrap its dividend as it undertakes a strategic overhaul. And in between, European Central Bank President Mario Draghi spent much of Wednesday at the Bundestag enduring a grilling from German lawmakers convinced that his monetary policies are undermining their country's economy. But even with the week it had, Germany's banking sector is not alone in its problems....

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