Europe Stocks Set for Worst Week in Three Months as Banks Plunge

by Roxana Zega

A slump in Deutsche Bank AG spreading to the industry deepened a selloff that took European equities for their biggest weekly slides since before the U.K. secession vote.

Shares of the German lender sank 8.4 percent, heading for their biggest slump since the aftermath of the U.K. secession vote, after rebuffing the $14 billion that the U.S. Justice Department is seeking to settle a probe. Royal Bank of Scotland Group Plc and Credit Suisse Group AG also fell more than 4.8 percent, along with Italian and Portuguese firms. That highlights the vulnerability of the recent rebound, with a gauge tracking the region’s lenders down 5.3 percent this week, erasing almost a third of what it gained in the past two months.

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