Deutsche Bank woes not likely to affect KL badly

Troubled times: The headquarters of Deutsche Bank in Frankfurt. It is reported to be negotiating for a lower fine of US5.4bil instead of US14bil for misselling mortgage-backed securities. – AFP

LINGERING concerns over the health of Deutsche Bank whose shares hit a record low last Thursday is not expected to have a significant impact on the market here but the situation bears watching for any spillover effects later.

“While there will be concerns over the contagion effect on Asian banks, a real escalation of counter party risks (that the other party to an agreement will default) is not likely to be too significant,” said Thomas Yong, CEO, Fortress Capital.