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Deutsche Bank: the 'too big to fail' problem returns

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Deutsche Bank: the 'too big to fail' problem returns

Deutsche Bank: the 'too big to fail' problem returns
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Fears of a repeat of 2008 and the Lehman Brothers crash mean Deutsche Bank’s shares have been on a wild ride, with sometimes extreme reaction in the world’s markets.

This time the institution in the firing line is in Europe and is much larger than Lehman, indeed it is Germany’s biggest lender.

The concern has been triggered by a $14 billion settlement demand from the US Justice Department for activities linked to sub-prime mortgages dating back to 2005.

In Business Line we look at how Deutsche Bank got to this position and what might happen next.