Shares of Deutsche Bank AG (NYSE:DB) are on the move on Friday, rising by about 14% as of 3:45 p.m. EDT.
Deutsche Bank shares rose after the bank's CEO, John Cryan, wrote a message to the bank's employees to address reports that a handful of the company's hedge-fund clients had reduced the amount of business they do with the bank. Cryan noted that the report should be considered "in the context of the bigger picture: Deutsche Bank overall has more than 20 million clients."
Further helping the stock were reports that the bank may settle with the U.S. Department of Justice for as little as $5.4 billion, significantly less than the $14 billion originally suggested by the DOJ. Deutsche Bank has yet to confirm the actual figures.
Any billion-dollar settlement with the DOJ is significant as a percentage of the company's market cap. The current share price imputes a market value for the bank of just under $18 billion.
Earlier in the week, analysts worried that the settlement could force Deutsche Bank to raise capital, presumably with dilutive stock issuance. For now, though, markets seem pleased that a settlement with the DOJ may cost less than originally feared, potentially allowing the bank to avoid dilutive capital raises.