You are here: Home - Investing - Experienced Investor - News -

Banks’ share prices tumble after Deutsche Bank fined for misselling

Written by: Hannah Uttley
Share prices at UK banks have taken a knock after Germany’s largest lender, Deutsche Bank, refused to pay a $14bn fine for mis-selling residential mortgage-backed securities (RMBS).

Royal Bank of Scotland was hit the hardest as share prices dropped by 3.4%, followed by Standard Chartered which fell by 2.6% and Barclays down 2.6%.

A combination of the Deutsche Bank’s refusal to pay the fine issued by the US Justice Department and the potential for the Bank of England to cut rates further before the end of the year meant unpleasant news for a sector so “intricately connected”, said Accendo Markets analyst Mike Van Dulken.

“RBS is suffering most today because it remains in the firing line stateside for its own RMBS mis-selling and actions in the run-up to the financial crisis,” he said.

At the same time, shares in Aldermore and OneSavings Bank were down 2.1% and 1.4%, respectively today.

Shares at challenger banks and housebuilders have been hammered since the EU referendum vote in June, as investor confidence fell at the news of a Brexit vote. Tax changes in the buy-to-let sector have also played a part in challenger banks’ dip in performance, which are seen as having greater exposure to the sector than larger, established institutions.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week