Deutsche Bank Is Crashing

Shares of Deutsche Bank AG DB took a nose-dive Thursday afternoon.

The rapid decline followed a Bloomberg report which stated that several hedge funds that clear their derivative trades with Deutsche Bank have "withdrawn some excess cash and positions held at the lender."

Bloomberg, citing "a person familiar with the situation," added that some of the hedge funds who have cut their exposure include Millennium Partners, Capula Investment Management and Rokos Capital

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Bloomberg's report acknowledged that the majority of its more than 200 derivative-clearing clients haven't made any changes. However, an internal bank document seen by Bloomberg News did suggest that some funds who use Deutsche Bank's prime brokerage services have indeed moved a portion of their derivatives holdings to other firms.

Bloomberg suggested the client outflow may serve as a sign of mounting concerns over doing business with the bank.

"Our trading clients are amongst the world's most sophisticated investors," Michael Golden, a spokesman for Deutsche Bank, told Bloomberg in an e-mailed statement. "We are confident that the vast majority of them have a full understanding of our stable financial position, the current macroeconomic environment, the litigation process in the U.S. and the progress we are making with our strategy."

Shares traded recently at $11.43, down 7 percent on the day and a new all-time low.