Deutsche Bank is diving

Deutsche Bank shares opened 4% lower in Germany on Thursday after the bank failed the US Federal Reserve's Dodd-Frank stress test.

The test measures the ability to respond to an event similar to the financial crisis, and examines 33 financial institutions with more than $50 billion (£37.1 billion) in assets in the US.

Shares in Deutsche Bank have recovered after an hour of trade and are now around 3% lower.

Santander also failed the Dodd Frank test, while Morgan Stanley received a conditional non-objection and must resubmit its plan. The bank has until December 29 to do so.