Deutsche bank suffers turbulent week

Deutsche Bank faces financial challenges due to a €14 billion fine from the US Department of Justice, causing a drop in share prices and investor confidence. CEO John Cryan reassures staff of the bank's stability, citing strong liquidity reserves. The situation draws parallels to the Lehman Brothers collapse, highlighting the potential for a financial crisis if market confidence wanes. Despite Angela Merkel's reluctance, the German government may need to intervene to stabilize the bank, given its significance to both the German and global economies.

What was the primary reason for Deutsche Bank's financial troubles as discussed in the first section?

• A sudden drop in customer deposits

• A €14 billion fine from the American Department of Justice

• A failed merger with another bank

• A cyber attack on their systems

How did Deutsche Bank's CEO, John Cryan, describe the bank's balance sheet?

• Dependent on external funding

• The most unstable in 20 years

• In need of immediate restructuring

• The most stable in 20 years

What historical event is mentioned as a cautionary tale for major banks in peril?

• The collapse of Lehman Brothers

• The dot-com bubble burst

• The 1987 stock market crash

• The Enron scandal

What is the German government's initial stance on bailing out Deutsche Bank?

• They are eager to provide financial support

• They are waiting for international support

• They refuse to consider a bailout

• They have already provided a bailout

Why might the German government eventually decide to intervene with Deutsche Bank?

• To reduce taxes for citizens

• To increase their political influence

• To maintain the bank's global economic importance

• To prevent a competitor from taking over