49914
Deutsche Rebuffs $14b US Penalty
World Economy

Deutsche Rebuffs $14b US Penalty

The US Department of Justice is asking Deutsche Bank to pay $14 billion to settle an investigation into mortgage-backed securities, the bank has said.
Deutsche Bank said it "has no intention to settle these potential civil claims anywhere near the figure cited", BBC reported.
The claim against Deutsche, which is likely to be the subject of negotiations for several months, was much bigger than expected.
The bank's shares fell nearly 7% in early trading.
"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.
The sale of residential mortgage-backed securities played a significant role in the 2008 financial crisis.
Banks in the US have been subject to a number of investigations over allegations of giving mortgages to unqualified borrowers, then repackaging those loans as safe investments and selling the risk on to others.
 At the current figure, the fine facing Deutsche Bank is one of the largest penalties handed out by US authorities in the aftermath of the financial crisis.
The Department of Justice sought $12 billion from Citigroup in 2014 for the sale of mortgage-backed financial products. The bank ended up paying $7 billion.
In 2013, JP Morgan Chase was fined $13 billion following allegations it overstated the quality of mortgages being sold to investors. In the following year, Bank of America paid $16.7 billion to settle similar charges. And Goldman Sachs settled for $5.1 billion in January this year.
The fine has emerged at a difficult time for Deutsche Bank. Its most recent results revealed a 20% fall in second quarter revenues and a 67% drop in profits.

 

Short URL : https://goo.gl/IojYYB
  1. https://goo.gl/Rtaqtl
  • https://goo.gl/1w9cpW
  • https://goo.gl/sfjUYj
  • https://goo.gl/WJ9oqQ
  • https://goo.gl/m267nc

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...

Trending

Googleplus