Deutsche Bank is rebounding.
After sinking to an all-time low on Thursday, shares of the US-traded Deutsche Bank are up over 6% in trading on Friday.
The last two weeks have been troubling for Deutsche. After a report that the bank may be subject to $14 billion in fines by US regulators over bad derivative products from the financial crisis, shares of Deutsche began a tailspin. Additionally, rumours of a bailout — or lack thereof — from the German government and decreasing exposure to Deutsche by hedge funds haven’t helped.
On Friday, however, CEO John Cryan sent a letter to employees assuring them that the bank is still stable. Additionally, the consensus from analysts is that the bank will not settle for the $14 billion and should be able to make it out of the current crisis (though it doesn’t remedy larger, long-term issues).
Following the positive news flow, shares have popped over 7.5% as of 10:08 a.m. ET to $12.36 a share.