Deutsche Bank Drops in Selloff Citi Describes as Irrational
- Latest bout of stress comes days after Credit Suisse rescue
- Financial sector suffering widespread share-price declines
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Deutsche Bank AG fell by the most in three years and the cost of insuring its debt against default rose, in a selloff that Citigroup Inc. analysts described as irrational.
The bank, which has staged a recovery in recent years after a series of crises, was the biggest loser among large European bank stocks Friday after announcing a plan to repurchase debt, a move normally seen as a sign of strength. Analysts struggled to explain the selloff, which prompted German Chancellor Olaf Scholz to publicly back the lender.