Banks’ share prices tumble after Deutsche Bank fined for misselling
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.