Shares of Deutsche Bank hit a new record low on Friday before recovering some of their gains in afternoon trading.
The fresh plummet on the European market open to a record low of 9.90 euros were sparked by fresh capital concerns over a proposed settlement by the U.S. Department of Justice and a report that some hedge funds were reducing their exposure to the embattled bank.
The German lender's stock has been on wild ride in recent weeks and dipped below 10 euros a share on Friday morning. By 2.00 p.m. London time the stock was out of negative territory.
Rival German lender Commerzbank saw its shares fall 4 percent after announcing job cuts on Thursday and a plan to cut its dividend. Other European lenders like Unicredit, Barclays and Credit Agricole also saw hefty losses as the session progressed.
At one point on Friday, the cost of insuring Deutsche Bank's debt against default jumped by 21 basis points on Friday, according to data from Markit, and trading in Deutsche Bank's so-called "CoCo" bonds - widely-watched contingent convertible bonds - set a new record low, according to Dow Jones. These bonds are converted into equity once a specified event has occurred (if the bank were to undergo a precautionary recapitalization, for instance).