Deutsche Bank was hit by an embarrassing IT glitch over the weekend that left some German customers unable to withdraw money.
German paper Handelsblatt reported that some customers were unable to get cash out on Saturday after technical problems at the bank. Deutsche Bank told the paper that it was “a short breakdown” and only “a few customers” were affected, the paper says.
But the timing of the problem is terrible. Deutsche Bank is battling a market confidence crisis, seeking to prop up its ailing share price amid fears about its ability to deal with a looming multibillion dollar fine.
Deutsche Bank’s share price crashed to record lows last week after reports that the US Department of Justice is planning to hit the bank with a $14 billion fine for misselling mortgage-backed securities in the run-up to the financial crisis. That fine is bigger than the bank’s market value and led to fears that Germany may have to bail out the bank, something Berlin denied.
Fears were exacerbated on Friday by reports that a handful of hedge funds had reduced business with the bank to limit exposure to any upset. A reassuring letter from CEO John Cryan helped shore up the share price, as did reports that Deutsche was closing in on a $5.4 billion settlement, although talks appear less advanced than first thought.
Deutsche Bank has been hit by IT problems before, with German customers unable to withdraw money back in June after some transactions were booked twice.