30.09.201601:17:00UTC+00Hedge funds pull plug from Deutsche Bank despite scandal

Deutsche Bank AG has started to lose hedge fund clients as they pull some of their holdings in the banking company, which can trigger a possible battle with German regulators over its stability in the future.

As shares touched a 33-year low this week, the German lender released an official statement reiterating its strong financial condition.

An individual privy to the situation disclosed some clients had placed risk limits on their transaction with Deutsche Bank in response to the scandal that eroded the lender and its reputation, as well as recent surge in its credit default swap rates.

European officials and regulators have refrained from commenting on Deutsche Bank's woes. But conveyed a bullish tone in private, saying it can infuse some money to boost the bank but aligned with current market conditions.