German chancellor urges calm and insists bank is ‘very profitable’
Bank shares plunged across Europe on Friday amid fresh worries over the financial system, forcing the German chancellor to insist Deutsche Bank was not in danger.
The FTSE dropped by as much as 2.2%, wiping as much as £42bn off the value of major firms.
Shares in Deutsche Bank tanked by more than 14% before midday and credit default swaps – which are used by Deutsche’s bondholders as insurance should it fail – soared.
In the UK, Barclays, NatWest and Standard Chartered saw their shares fall by around 6%.
It comes after the collapse of two US banks and the rushed takeover of Swiss giant Credit Suisse by its rival UBS.
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