Deutsche bank loses hedge fund businesses

Global hedge funds have started pulling money out of trouble Deutsche bank after reports have started coming out that the bank might fail in its obligations if the US regulator imposes a $14 billion fine over mishandling of mortgages during the global financial crisis of 2008/09. Rumors have come out that the German authorities and the European Central Bank (ECB) preparing for a rescue. Both have denied such rumors and Deutsche bank said that they are not seeking any official help. The share price of the bank has dropped to the lowest level since the 80s.

A Bloomberg report indicates that 10 prominent hedge funds like Millennium Partners, Capula Investment Management, and Rokos Capital Management have cut their businesses with Deutsche, however, the bank has issued a statement saying everything is fine in that front.

Rumor or not, the German government can’t really afford to lose its one and only bank that can truly be called global and it would also be the biggest loss of credibility. However, rescuing the bank using taxpayers funds won’t be easy, especially since Germany has been among the opposer of such a rescue for the banks in other Eurozone countries.