Deutsche Bank nearing settlement with U.S. authorities on mortgages: sources

Fri Sep 9, 2016 7:35am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Arno Schuetze and Andreas Kröner

FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE: Quote) is nearing a settlement with U.S. authorities on past misspelling of mortgage-backed securities, two people close to the matter said.

The case is of many over the past decade which have tarnished the reputation of the banking sector and cost banks billions in fines.

While the price for the Deutsche settlement has not yet been decided, the payment "will not overburden" the bank, one of the people said.

German monthly manager magazine earlier reported that Deutsche Bank is expected to receive a demand for more than $2.4 billion from U.S. authorities in settlement of an investigation into past misspelling of mortgage-backed securities.

The U.S. Department of Justice (DoJ) is expected to send Deutsche Bank a statement of facts stretching to about 100 pages early next week, specifying how much Deutsche will be asked to pay to settle the case, the magazine said.

Deutsche Bank declined to comment.

Its shares had risen 5.2 percent by 1121 GMT in a flat German market, with traders citing relief that Deutsche Bank could be close to concluding the long-running investigation.

"A $2.4 billion U.S. mortgages settlement would be clearly below the 3 billion euros ($3.4 billion) that I expected, so this is clearly positive news," said Enrico Racioppi from brokerage Hammer Partners.   Continued...

 
A logo of a branch of Germany's Deutsche Bank is seen in Cologne, Germany, July 18, 2016.  REUTERS/Wolfgang Rattay/File Photo