Deutsche Bank (DB) - Get Report shares traded lower in Frankfurt following a report from The New York Times that suggested the troubled German lender is facing a U.S. money laundering probe.

The Times said federal authorities are looking into how the bank handled reports of suspicious activity in certain accounts, some of which are allegedly linked to President Donald Trump's son-in-law a Jared Kushner. The Times also reported last month that Deutsche Bank management prevented staff from reporting the concerns to U.S. authorities, with one employee claiming she was fired for red-flagging the moves in and out of accounts tied to the now-defunct Trump Foundation.

Earlier this month, Senate lawmakers  Chris Van Hollen and Sherrod Brown wrote to the U.S. Federal Reserve and urged it to investigate Deutsche Bank's relationship with both Kushner and the President. House Democrats have also subpoenaed the bank for financial records linked to Trump and his family and businesses.

Deutsche Bank shares were marked 1.6% lower in Frankfurt Thursday, against a 0.9% gain for the DAX performance index benchmark, to change hands at €6.375 each.

The Times report marks a fresh setback for Deutsche Bank, Europe's biggest and most systemically important lender, which had seen solid gains over the past few sessions following reports it was prepared to create a "bad bank" to house underperforming assets and isolate its deposit base.

The bad bank plan, first reported by the Financial Times, would form part of a broader overhaul for Deutsche Bank that would see it pull back from equity and fixed income trading outside of Europe as it moves to slim costs, reduce risk and return to profitability.

The so-called "bad bank" portion of the plan, according to multiple media reports, would be designed to hive off around €50 billion worth of assets, mostly longer-date derivatives, from the lender's main business.

Germany's biggest bank has been beset by myriad headline risks ranging from a failed merger attempt with rival Commerzbank AG (CRZBY) , last year's warning from U.S. regulators regarding its risk management practices, a string of losses from its trading division and the planned exit of major shareholder HNA Group.

Deutsche Bank shares have been hoovering near record lows this month as as pressure continues to mount on the region's biggest lender amid calls to increase its capital buffer and record low interest rates in the struggling European economy.

Benchmark 10-year German bunds traded near a record low of -0.305% Thursday as data continues to suggest that the prolonged U.S.-China trade spat could trigger a global recession and central bankers around the world, including ECB President Mario Draghi, signal for lower interest rates.

Those concerns, as well as a more pronounced slowdown in Germany over the first three months of this year and weakening sentiment data since then, have pushed the country's Financial Stability Board to have domestic lenders set aside nearly $6 billion in extra cash, starting this summer, as a precaution against further risks.

Image placeholder title