Deutsche Bank shares have suffered a huge blow after the German giant refused to pay a $14bn fine demanded of it. The US Department of Justice have called for the bank to pay up following an investigation into the sale of mortgage-backed securities.

European stock markets have plummeted to their worst week in three months, with banks falling the furthest – Deutsche Bank stocks lost 8.4% while RBS Group and Credit Suisse Group both fell by over 4.8% - as further doubts were raised concerning the strength of Europe’s major banks.

After a period of relative strength it appears as though cracks are beginning to appear in European stock markets. The FTSE 100 has fallen 0.3% today, closing its second consecutive week of losses while the S&P 500 is down 0.57%.