Deutsche Bank AG (DB) - Get Report shares fell to the lowest level in more than three months Tuesday as Germany's largest lender kicked off its $8.6 billion capital raising effort and investors reacted to a report it could face fines from U.S. authorities over currency trades.

Deutsche Bank shares fell more than 8.1% in Frankfurt trading, and were marked at €15.76 each by 11:30 CET, the lowest since Dec. 5. The stock has lost more than 11.8% since the bank announced details of its €8 billion $8.6 billion) rights issue Sunday and more than 18% since the plan was revealed on March 5.

However, a portion of Tuesday's decline may also be linked to a Bloomberg report that said the bank could face fines from both the New York Federal Reserve and the state's Department of Financial Services over allegations it broke various rules in foreign exchange trading.

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Deutsche will sell 687.5 million shares at €11.75 each, the bank said Sunday, compared to its Friday closing price of €17.86 with a ratio of 2:1 and subscription period that will run through April 6. 

"Our goal is to strengthen our position as a leading European bank with global reach, supported by our strong position in our home market, Germany," CEO John Cryan said in the bank's annual report. "A solid capital base is essential if we are to succeed in our future strategy and capture growth opportunities for Deutsche Bank. For that reason, the Management Board has decided on a capital raising from which we expect proceeds of around eight billion euros."

Deutsche Bank confirmed the launch of the rights issue on March 5 in a statement that outlined a series of capital raising and balance sheet measures, including the sale of around €80 billion in legacy assets from its Global Markets division and the partial spin-off of its Deutsche Asset Management Unit within the next two years.

The bank also set new near-term financial targets, including a post-tax return on tangible equity of around 10% under normal conditions and a "competitive dividend payout ratio for fiscal year 2018 and thereafter."