Tuesday, July 28, 2009

Deutsche Bank Shares Down 7%

Shares in Deutsche Bank dropped over 7% Tuesday as strong growth in the bank's bottom line wasn't enough to offset worries over rising bad debt charges.

The banks provisions for credit losses soared to 1 billion euros from 135 million euros in the second quarter of 2008.

"We have witnessed stabilization of the world's banking industry and financial markets. Increased liquidity and lower volatility in financial markets are both supportive for our business," CEO Josef Ackermann said in a statement.

The stabilization won't be there long, if Bernanke continues his new tight money policy. We are at the edge and the clock is ticking. With these kinds of debt charges going into what will likely be a second dip downward, Deutsche is going to suffer major pain.

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