Deutsche Bank (DB) Stock Falling as Hedge Funds Cut Exposure - TheStreet

NEW YORK (TheStreet) --Shares of Deutsche Bank (DB) - Get Report were falling 6.02% to $11.56 in early-afternoon trading on Thursday after reports surfaced that 10 hedge funds are said to have cut exposure to the bank, CNBC's Scott Wapner reported during Thursday's "Fast Money Halftime Report."

"The headlines within this report are that Deutsche Bank is confident that clients understand its stable finances, and that some Deutsche Bank clients have been said to reduce collateral on trades as well. The other headline making the rounds and certainly making people nervous is the following. A number of funds that clear derivatives trade with Deutsche Bank have withdrawn some excess cash positions held at the lender," Wapner noted. 

The Frankfurt, Germany-based bank has been under pressure recently as the U.S. Department of Justice levied a $14 billion fine on Deutsche Bank to settle investigations regarding mortgage securities the bank sold before the financial crash of 2008.

Deutsche Bank co-CEO John Cryan told the German newspaper Bild that it was made clear from the beginning that the bank would not agree to pay the fine, according to the BBC

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate DEUTSCHE BANK AG as a Sell with a ratings score of D. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: DB

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