After Silicon Valley Bank became the second-largest bank of all time to fail, investors and analysts across the world have been sounding alarm bells. Some fear that the entire banking system is still at risk, but many think that the Treasury Department’s decision to bail out depositors was enough to solve the problem.
The crisis raised concerns about the stability of all major banks, but Deutsche Bank, one of the world’s largest and most scrutinized financial institutions, is worrying investors more than others. Deutsche Bank was already not in the best shape when the recent banking crisis started.
The German banking giant has faced numerous challenges in recent years, with its stock price dropping about 30% in less than two months. Despite a small recent rebound, investors remain skeptical about the bank’s future prospects. Moreover, Deutsche Bank’s interconnectedness with other financial institutions heightens the potential for a domino effect should it run into major liquidity issues.