Fresh fears over Deutsche send shares 7% down

Fresh fears about Deutsche Bank (LSE: 0H7D.L - news) have seen its shares tumble again.

The German lender saw its US-listed stock fall 7% in New York.

It followed a report that hedge fund clients had withdrawn excess cash and adjusted positions linked to Deutsche.

The bank said its trading clients remained largely supportive with the "vast majority" understanding that it had a "stable financial position".

Deutsche had earlier closed 1% ahead in Frankfurt before its shares on Wall Street were dragged lower by the report on hedge funds, from Bloomberg.

:: Deutsche Bank: Why we should all be deeply concerned

Earlier this week, the lender had sunk to a record low on fears over its funding and the German government had been forced to deny it was preparing a rescue plan.

But in the last couple of days the shares had stabilised.

Fears over Deutsche have deepened recently after it emerged that it was facing a US fine of up to $14bn (£11bn) over its conduct during the financial crisis.

Germany's banks are, more widely, seeing profits squeezed by the European Central Bank's negative interest rate and money printing policy, policies which narrow the margins they can make from loans.

Deutsche is in the midst of a major shake-up to turn around its fortunes.

The size of the global banking giant, and its troubled state, have seen it labelled as the single biggest net contributor of risk to the global financial system by the International Monetary Fund.