Deutsche Bank (NYSE:DB) stock is falling on Friday as credit default swaps hammer the banking company’s shares.
The big news here is the company’s five-year credit default swaps extending 24 basis points to 193 basis points. For the record, these are a type of insurance that protects the company’s bondholders against default.
Investors will also keep in mind that Deutsche Bank is leading a larger drop among European banks. That includes Credit Suisse (NYSE:CS) and UBS (NYSE:UBS) shares as other bank stocks falling alongside DB today.
What’s Behind the Bank Crash?
Problems in the banking sector began earlier this month with the failure of SVB Financial (NASDAQ:SIVB). That resulted in a domino effect that hit other regional banks in the U.S. Shortly afterward, the crisis expanded to Europe.
Not helping bank stocks today is news of an investigation from the U.S. Department of Justice (DOJ). The agency is investigating both Credit Suisse and UBS. The issue here is the banks allegedly helping Russian oligarchs avoid sanctions.
It looks like things will remain rough in the banking sector for some time now. That means DB, as well as other bank stocks, could continue to suffer alongside it. Investors will want to keep that in mind before considering any investments in the market right now.
DB stock is down 5.9% as of Friday morning.
Traders seeking out more of the most recent stock market news will want to keep reading!
InvestorPlace is offering up all of the hottest stock market news worth reading about on Friday! A few examples include why shares of Allarity Therapeutics (NASDAQ:ALLR), BGSF (NYSE:BGSF), and Bird Global (NYSE:BRDS) stock are moving today. You can find more on these matters at the links below!
More Friday Stock Market News
- Why Is Allarity Therapeutics (ALLR) Stock Down 23% Today?
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- Why Is Bird Global (BRDS) Stock Up 19% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.