1) Deutsche is a "too big to fail bank" in Germany,
2) This fine is being imposed by the USA
3) Deutsche is already teetering as it without this fine. See: https://www.ft.com/content/9a018afe-3e37-11e6-9f2c-36b487ebd...
4) It's borrow costs, which banks live and die by, are increasing due to all of this which leads to pretty awful feedback cycle that it may have trouble getting out of without ending up being owned by the German government.
The problem for the world si that Deutsche has a "shit load" of derivative exposure, now in today's world, almost all banks have some, but Deutsche, under Boaz Weinstein took bank derivative exposure to a whole new level and they've been trying to dig themselves out of this hole for the past 5=7 years.
http://www.cnbc.com/2016/07/15/deutsche-bank-a-ticking-time-...
The world's financial community can't really let Deutsche fail as this would trigger a whole whach of ISDA agreements, sort of how in 2011, Greece's banks failed, but they didn't "fail" in the strictly legal sense that would trigger default clauses on their agreements.
Who would have thought that the German's would be the ones to start the next financial collapse:)
No as to the fine, they aren't anywhere near the first bank to be charged and fined and all the others had their fines cut atleast in half.
Just incase you don't think this is terribly serious..... Deutsche Bank's 5 year default probability just jumped up to 15.8%. For a bank, that's huge, no other large bank is anywhere close to that!!!