Deutsche Bank (DE:DBKGn) shares on Tuesday continued their slide and fell to record lows.
The German bank, which is also the country's biggest lender, could be on the hook to pay up to $14 billion to US authorities in legal costs and settlements over an investigation into sales of mortgage-backed securities.
The penalties would leave the bank undercapitalized.
Reuters earlier reported that state-backed lender NordLB put off a 500 million euro ($560 million) bond sale on Tuesday because of a lack of demand. This happened as investors worry about the health of Germany's financial industry.
German Chancellor Angela Merkel said the bank will not receive any state bailout, reminiscent of the funds America's most troubled banks got amid the 2008 financial crisis.
Deutsche Bank shares are down 2% to €10.32 at 2:46 p.m. in Frankfurt (8:46 a.m. ET). On Monday, the US-listed shares closed down 6% at $11.85, the lowest level going back to at least 2002.
The slide in Deutsche shares dragged the financials sector of the S&P 500, making it the biggest loser on Monday.
This chart shows the slide in Frankfurt-listed shares:And the stock going back to 2007: