Deutsche Bank's woes cast long shadow over European banking

London

THE turmoil swirling around Deutsche Bank AG has brought simmering concerns about the health of Europe's banks back to a boil.

Germany's largest lender extended losses to a record low this week, dragging down European financial stocks, after the US Department of Justice requested US$14 billion to settle claims tied to fraudulent mortgage-backed securities. While the bank said that it won't pay anywhere close to that amount, the dust-up fuelled doubts over its capital levels and refocused investors on the industry's faults.