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Deutsche Bank (DB) Down Over 7%, Stock Hits New Low

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On Monday, shares of struggling Deutsche Bank (DB - Free Report) are falling, down over 7% in late morning trading after reports surfaced over the weekend that the German government has ruled against giving state assistance to the bank.

Shares of Deutsche Bank have lost more than 53% over the past year, and are currently trading about $11.86 per share, a new low for the bank. According to CNN Money, shares in Germany’s biggest bank haven’t been this low in over 20 years.

Over this past weekend, German magazine Focus reported that Chancellor Angela Merkel would not give any state-sponsored assistance to Deutsche Bank, citing unnamed officials who stated that the German government would not get involved with the Department of Justice’s suit or bail out the bank. The DOJ is currently seeking $14 billion from Deutsche Bank over its role in the financial crisis of 2007-2008.

The bank said it has "no intent to settle these potential civil claims anywhere near the number cited.” Check out this video from Zacks' David Bartosiak detailing the decision:

In a statement, however, Deutsche Bank said it has never "asked Chancellor Merkel to intervene in the issue with the U.S. Department of Justice. This question is not on our agenda: Deutsche Bank is determined to meet the challenges on its own," it said.

This is just the latest controversy to hit Deutsche Bank. It reported weak second quarter financial results back in July, with gross profit declining 66.8% year-over-year thanks to lower revenues and higher provisions negatively impacting results, as well as restructuring costs and a disappointing trading and investment banking performance.

Currently, DB is a #5 (Strong Sell) on the Zacks Rank.

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