Global real estate crisis causes first German bank to stumble. Deutsche Pfandbriefbank is on the verge of junk status – due to its exposure to American real estate.
Deutsche Bank has 4.9 billion euros in loans outstanding for commercial real estate in the American market. Aareal Bank has granted loans worth 8.6 billion euros on the US market. Half of this is allocated to finance office properties. The European real estate market can also become a risk for German banks.