Deutsche Bank’s 90% Stock Collapse And The ECB’s Attempted Rescue In One Chart

Jon Economy, Fiscal Policies, Market Commentary

Deutsche Bank, the European Union’s largest bank, has suffered a 90% stock price decline since its peak on May 11, 2007. The European Central Bank (ECB) rode to the rescue like John Wayne in a John Ford US Cavalry flick.

This chart allows you to see the attempt of the ECB to stimulate growth in the European economy and save the banks. After Deutsche Bank’s stock price peaked in May 2007, it began to nosedive. The financial crisis set it and the ECB reacted with lowering rates and performing asset purchases (like the Federal Reserve). While the ECB began to trim their asset purchases in 2013, they had to start up asset purchases again and cut the main refinancing rate once again in late 2014.

This post was published at Wall Street Examiner on July 3, 2016.