May 31, 2018 / 3:26 PM / 2 years ago

Cost of insurance against Deutsche Bank default surges after WSJ report

FILE PHOTO: The headquarters of Germany's Deutsche Bank is photographed early evening in Frankfurt, Germany, January 26, 2016. REUTERS/Kai Pfaffenbach/File Photo

LONDON (Reuters) - The cost of insuring exposure to credit issued by German lender Deutsche Bank jumped on Thursday after the Wall Street Journal reported the U.S. Federal Reserve last year designated the bank’s U.S. operations to be in “troubled condition”.

Deutsche Bank’s 5-year credit default swaps (CDS) DB5YEUAM=MP jumped by 22 basis points from Wednesday’s close to 183 basis points - the highest since December 2016, data from IHS Markit showed.

Shares in the bank (DBKGn.DE) plunged as much as 7.8 percent to a fresh record low at 9.134 euros.

Reporting by Karin Strohecker and Helen Reid; editing by Julien Ponthus and Emelia Sithole

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