Deutsche Bank looks tailor-made to give Angela Merkel a headache.
Germany’s biggest banks are in big trouble. That’s not exactly news. Before the financial crisis, Deutsche Bank’s share price was nearly €100 (us$135) a share. At the start of this year it was €21.45 ($24). This week, it hit its lowest value since 1973 and currently stands below €11. Now its situation is so dire that its name is trending on Twitter.
Since the 2008 financial crisis, Germany has been the rock of stability for Europe’s economy. It has weathered the storm with low unemployment, while economic crises upended entire political systems elsewhere in Europe. Now the banks at the heart of Germany’s economy seem on the brink of going under. The global economic crisis that began in 2008 could be about to hit Germany.