Deutsche Bank's shares drop in latest trouble for financial institutions

March 24 (UPI) -- The global banking crisis appears to have ensnarled German lender Deutsche Bank, which saw its shares tumble more than 13% early Friday after an increase in credit default swaps on Thursday, spiking worries about the foundation of European Banks.

It was the third straight day that Deutsche Bank stocks slipped as it has now lost one-fifth of its value in March. The losses come on the heels of UBS rescuing Swiss banking giant Credit Suisse and the collapse of Silicon Valley Bank and Signature Bank in the United States earlier this month.

Deutsche Bank had enjoyed profits for 10 consecutive quarters after its euro restructuring in 2019, reducing costs and increasing profitability along the way.

The bank said early Friday it will redeem a Tier 2 subordinated bond early, meant to boost investors' confidence, however, the move appeared unsuccessful.

"Deutsche Bank is under pressure now. People are repositioning, unloading weak links. People want to avoid anything that could come under focus," said Jon Jonsson, a credit portfolio manager at Neuberger Berman, according to The Wall Street Journal.

"I don't think there's any immediate concern about Deutsche Bank but things are moving quite rapidly these days. It's certainly a bank that has struggled with profitability."

Questions around the banks affected markets around the world, The German DAX market was off more than 2%, the FTSE in London was done fell nearly 1.8% Friday afternoon and Tokyo's Nikkei was off 0.13%.