The CEO of embattled German banking giant Deutsche Bank AG (NYSE:DB), whose stock price fell another 6% yesterday to all-time lows, penned a letter to employees today that blamed speculators for the bank’s decline.
Chief executive John Cryan’s memo also attempted to assuage worries about hedge fund outflows, which he noted are “causing unjustified concerns” about the bank’s liquidity.
While he understands employees’ concerns over “extensive coverage” of the bank’s decline, Cryan reminded them that “Deutsche Bank overall has more than 20 million clients.” He also encouraged employees to batten down the hatches against what he perceives to be simply media hype surrounding the company’s troubles:
“It is now our task to prevent distorted perception from further interrupting our daily business. Trust is the foundation of banking. Some forces in the markets are currently trying to damage this trust.”
Cryan continued to outline four “important facts” about the bank’s strength, which touched on capital requirements it’s met, decreased market and credit risk, a solid pre-tax profit in the first half of 2016, and $215 billion in liquidity reserves.
In closing, the executive once again passed off market concerns as speculation:
“There is therefore no basis for this speculation. Nor can uncertainty about the outcome of our litigation cases in the US explain this pressure on our stock price, if we take the settlements of our peers as a benchmark.”
This latest commentary echoes Cryan’s recent comments that he sees “few risks” for Deutsche Bank, despite its massive share price decline that harkens back to the financial crisis. German regulators have reportedly met to discuss their concerns about the bank, but other reports suggest Germany won’t bail out Deutsche if it comes down to that.
Deutsche Bank’s U.S.-listed shares closed down $0.82 (-6.67%) to $11.48 on Thursday, but were up slightly in premarket trading Friday to $11.55. Year-to-date, DB has fallen 52.46%.