Deutsche Bank has found itself in trouble ever since the US Department of Justice last month demanded a $14 billion fine
Its share price fell to an all-time low last week amid concerns that the bank may lack the capital to service litigation costs
The threat of such a large fine has pushed Deutsche shares to record lows
The surge this week in relatively safe sovereign securities left about a third of the Bloomberg Eurozone Sovereign Bond Index ineligible for purchase under the ECB's quantitative-easing program
In short, fears that Europe lacks the cohesion to avoid a financial crisis may be enhancing the threat of one
The move to sell off the German giant's stock, which affected shares traded in Frankfurt, New York also helped drag down the US markets overall
Germany's largest lender said about two weeks ago it would fight a $14 billion demand from the US Department of Justice to settle claims it missold the securities
Deutsche shares fell almost 8% to another record low, adding to the sense of crisis around the bank triggered by a $14 billion
According to Reuters'data, investors have borrowed 39 mn shares of Deutsche Bank to bet against it - or about 2.8% of the total shares outstanding
Deutsche is facing a $14 billion fine from the US Department of Justice and concerns over its funding pushed its shares to a record low
The bank has been asked to pay fine over misselling of mortgage-backed securities by the Department of Justice
The bank's US-listed shares fell 8 per cent in after-hours trading
In July, CEO John Cryan said he hoped to close the bank's four largest remaining litigation cases this year
It said the Indian economy has been afflicted by a multitude of global shocks in recent years
The lender scraped past the level of 7.5% that analysts had seen as a threshold
It is followed by HSBC and Credit Suisse, the fund said
John Cryan, a Briton, said financial centre won't die but it will get weaker
The bank is in the midst of a sweeping overhaul
CEO John Cryan warns investors not to expect good results for the full year.
The ratings agency will also review the bank's additional tier 1 securities (Ba3).