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Deutsche Bank announces $6.3B losses

  • Story Highlights
  • Deutsche Bank says it expects fourth quarter loss of nearly €5 billion
  • €4.8 billion ($6.3 billion) hit pushes bank's 2008 loss down to €3.9 billion
  • Bank said loss reflects reorganization and efforts to reduce crisis exposure
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(CNN) -- German banking giant Deutsche Bank Wednesday announced it expected to suffer a fourth quarter loss of nearly €5 billion as the financial crisis hit its operations.

The €4.8 billion ($6.3 billion) hit pushed the bank's 2008 loss down to €3.9 after tax.

"This development reflects exceptional market conditions, which severely impacted results in the sales and trading business," the bank said on its Web site.

Shares in the bank dropped on the announcement, falling 8.22 percent to €22.27 in midday trading.

Deutsche Bank said reorganization and measures to limit its exposure to financial risk had contributed to the loss.

Major financial institutions worldwide have posted huge losses in recent months, contributing to a global economic slowdown, as the fallout from the collapse of the U.S. sub-prime mortgage sector continues to claim new victims.

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