No joy for chief executive John Cryan in Washington...
Deutsche Bank has failed to secure a deal with the US Department of Justice (DoJ) over its mis-selling of mortgage-backed securities.
Shares in Europe's largest bank fell more than 3% in early Monday trading, making it the biggest faller on Germany's main stock market, after Deutsche chief executive John Cryan's visit to Washington did not bring about a quick resolution over the weekend.
Cryan was in attendance at the International Monetary Fund (IMF) and World Bank's autumn meetings, as markets hoped he could personally negotiate down the $14 billion (€12.52bn) fine with which Deutsche has been hit.
By 0950GMT, shares had recovered somewhat to €11.74. They have fallen about 48% in 2016 thus far.
Terry Torrison, MD of McLaren Securities, told Reuters:
"They had a bit of a bounce up last week, but I would still steer clear of Deutsche Bank. They were never going to sort out the US issues that quickly, and whatever happens, I still think they will need to have a rights issue."
The bank is now aiming to raise €5bn in capital to reinforce its balance sheet. With risky assets and thousands of jobs being cut, Cryan has called it a peak restructuring year.
Deutsche set aside €5.5bn ($6.2bn) for litigation at the end of June and is ultimately hoping to secure a settlement of between $3bn – $5bn.