Deutsche Bank (DBK) share price plunges in renewed bout of stress

Deutsche Bank AG became the latest focus of the banking turmoil in Europe as ongoing worries about the industry sent its shares down the most in three years and the cost of insuring against defaults rose.

The bank, which has staged a recovery in recent years after a series of crises, said on Friday it will do so redeem a tier 2 liable bond early. Such moves are usually intended to give investors confidence in the strength of the balance sheet, although the share price reaction suggests that the message is not getting through.