(NEW YORK) — Shares of Deutsche Bank have been trading near record-low levels this week, as the bank’s CEO is attempting to reassure his employees and the public that one of the world’s biggest banks is financially sound.
The stock has been on a largely downward trend ever since reports surfaced in mid-September that the U.S. Justice Department was seeking $14 billion from the bank to settle a case stemming from the 2008 financial crisis.
The bank said at the time that it would not pay the $14 billion tab.
A report Friday from Agence France Presse citing an unnamed source said that the bank and the Justice Department were nearing a settlement for $5.4 billion. That sent the stock soaring. The Justice Department declined to comment.
The stock’s recent decline was given new impetus in recent days after other media reports that hedge funds were pulling out of the bank.
In a message to employees Friday, Deutsche Bank CEO John Cryan said the reports about the hedge funds were “causing unjustified concerns.”
“I understand if you feel concerned by the extensive coverage on this issue. Our bank has become subject to speculation. Ongoing rumours are causing significant swings in our stock price,” Cryan said.
The CEO added, “It is our task now to prevent distorted perception from further interrupting our daily business. Trust is the foundation of banking.”
Copyright © 2016, ABC Radio. All rights reserved.