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Share values for Deutsche Bank and Commerzbank, Germany’s two biggest lenders, dropped more than 10 percent after investors sold €1.75 billion worth of stock in the two.
The sales took place on 11 April.
Capital Group, Deutsche Bank’s second largest stockholder, dumped €1.27 billion worth of shares. An unknown investor unloaded €475 million in Commerzbank’s stock on the same day.
The German banks have been struggling with shrinking market shares, citations by regulators, and years of losses. The two had begun restructuring programs after deciding against merging with each other.
The stock sales were sparked by the dimming outlook for European banks’ earnings amid record inflation, especially in energy prices, worsened by the Ukraine war and resulting sanctions.
Cerberus Capital Management had sold down its holdings in both banks in January.
Capital Group sold £900 million worth of British bank Barclays shares in March.
TREND FORECAST: The investors could see Germany’s economy beginning to stumble and get out of the country’s financial sector before the damage began. Germany risks the prospect that others might follow, draining capital from markets and leaving industry short of funds.