Here's the chart:

![](https://pbs.twimg.com/media/Fr-xgplXsAAajyI?format=jpg&name=4096x4096)
[source](https://twitter.com/RadarHits/status/1639224327391543297/photo/1)

You'll notice they survived the demise of Silicon Valley Bank (and Signature and Silvergate) with only a small drop. It was the demise of Credit Suisse that set off the collapse of Deutsche Bank shares.

Why? Because of how the Swiss government mishandled the rescue of Credit Suisse.

They wiped out the Additional Tier 1 bondholders (Credit Suisse's AT1 bonds were worth €17bn on the Friday before takeover), but *didn't* wipe out the shareholders, who merely took a haircut.

Other Europeans were dismayed - the European Central Bank and the Bank of England both issued statements saying that if a bank failed in their jurisdictions, shareholders would be wiped out first.

But investors are spooked. Any bank trying to issue fresh AT1 bonds in the current climate would see their bond auctions fail.

This is a big problem for banks like Deutsche Bank which had been planning to raise fresh Tier 1 capital by issuing new AT1 bonds. The market now thinks it can only raise fresh capital by issuing new shares. But this will dilute existing shares, so the share price is dropping by the amount the market thinks it will be diluted by.

I've no idea how the German government solves this - Deutsche Bank is too big to merge with another bank.

As for the Swiss, the mess they've made with the Credit Suisse takeover has dented their reputation.