Deutsche Bank Stock Slumps Following Police Raid
Bloomberg News

Deutsche Bank (DB) shares hit their second lowest close in history on Thursday after a police raid on the company's Frankfurt headquarters in early morning hours.

The stock fell 4.75% in Thursday's trading as the appearance of yet another scandal and the possibility of yet more penalties from regulators is stoking market fears on the stock that has already lost about half of its value in 2018.

Deutsche Bank legal problems

DB market cap = about $19.5 billion
Fines/disputes since 08 = $18 billion

— Jonathan Ferro (@FerroTV) November 29, 2018

Thursday's police raid was prompted by German authorities' interest in the company's role in the weaving web of offshore accounts laid out in the Panama Papers.

The raid was by no means small in scale, garnering the attention of nearly 200 officers on the scene at the Frankfurt offices.

"We confirm that the police are currently conducting an investigation at a number of our offices in Germany," Deutsche Bank said when contacted by TheStreet. "The investigation relates to the Panama Papers. We will be issuing further details in due course. We are cooperating fully with the authorities."

Adding to the suspicion around the bank was its confirmation that it was involved in handling money for Danske Bank (DNKEY) , a Danish bank that moved €200 billion through its Estonian branch over a ten-year period. Deutsche Bank cut ties with the dubious Danske Bank in 2015, but the damage was largely done.

While analysts in Europe declined to be quoted by TheStreet, more than one lamented the frequency with which Deutsche Bank has been embroiled in controversy.

TheStreet's sister publication Real Money has been covering all angles of the bank's continued struggle in its Stock of the Day coverage.

Real Money's technical analyst Bruce Kamich advised against buying the dip on the beleaguered bank in his look at the charts this morning.

"I know some traders like to buy weakness and buy when the news is terrible but that is not my style," he said. "DB could make a large percentage bounce at anytime but again I like my odds with the Mega Millions better than buying a stock in a prolonged downtrend."

For more coverage of the newest scandal at the German banking giant and trading strategies to profit off the plunge, check out Real Money.

Employees of TheStreet are restricted from trading individual securities.

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