By Justin Spittler
European bank stocks are crashing.
Deutsche Bank (DB), Germany’s largest bank, has plunged 36% this year. Its stock is at an all-time low.
Credit Suisse (CS), a major Swiss bank, has plummeted 40% this year to its lowest level since 1991.
As you can see in the chart below, the STOXX Europe 600 Banks Index, which tracks Europe’s biggest banks, is down 27% this year. It’s fallen six weeks in a row, its longest losing streak since the 2008 financial crisis.
These are huge drops in a short six-week period. It’s the kind of price action you’d expect to see during a major financial crisis.