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U.S. investor Capital Group sold big stakes in Germany’s two top banks – Deutsche Bank DB-N and Commerzbank – a person familiar with the matter said, dealing a blow to both lenders as they seek to rebuild investor confidence.

Shares in the two banks traded sharply lower on Tuesday after the previous day’s sale of more than 5 per cent in each of them by what had been an undisclosed investor.

The exit follows a similar move by U.S. private equity firm Cerberus in recent months and comes as both banks implement turnaround strategies to lift profitability and the value of their shares.

Capital Group, based in Los Angeles, is one of the few holders of such sizable stakes in both banks, but it has declined to comment on the matter.

The person confirming the name spoke on condition of anonymity.

Deutsche Bank shares were down 8.8 per cent and Commerzbank had lost 8 per cent by mid-afternoon in Frankfurt.

A statement from Deutsche Bank said that it remained “confident” in its strategy.

“Our focused business model and risk-management capabilities have proven their resilience in challenging times,” it said.

Commerzbank said the sale won’t change its strategy.

“The bank’s business model and risk management have proven effective in challenging times,” it said.

The sale resulted in proceeds of €1.75-billion ($1.9-billion), based on calculations from information provided by bookrunner Morgan Stanley.

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