Deutsche Bank must pay $14bn fine over US mortgage securities sale during 2008 crisis
Deutsche Bank must pay $14bn to settle a US investigation into its selling of mortgage-backed securities, Germany’s flagship lender has said.
The US Department of Justice claim against Deutsche, which the bank said it would dispute strongly, far outstrips the bank’s and investors’ expectations for such costs.
“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts“, Deutsche Bank said in a statement on Friday.
It gave no details about the alleged mis-selling but a source close to the matter told Agence France -Presse that the allegations stemmed from the sale of mortgage securities in the 2008 crisis.