Deutsche Bank became the largest bank in at least four years to feel compelled to reassure investors and employees that it has enough funds to pay coupons on its riskiest debt.
Deutsche Bank also published a note to employees from Chief Financial Officer Marcus Schenck that said the firm’s “capital and risk position remains strong.”
The cost of protecting Deutsche Bank’s debt against default has more than doubled this year, while its stock trades at about one-third of the company’s liquidation value. Co-Chief Executive Officer John Cryan has failed to generate confidence in his plan to cut costs and build capital as volatile markets threaten revenue and outstanding regulatory probes raise the specter of continued legal charges.
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