Deutsche Bank nears $5.4 billion settlement over mortgage bonds: AFP

Fri Sep 30, 2016 12:28pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

(Reuters) - Deutsche Bank AG (DBKGn.DE: Quote) is nearing an agreement with U.S. officials to pay $5.4 billion to settle charges related to its sale of toxic mortgage bonds before the financial crisis, French news agency AFP reported on Friday, citing sources.

Germany's largest lender said about two weeks ago it would fight a $14 billion demand from the U.S. Department of Justice to settle claims it missold the securities.

An agreement could be announced in the next couple of days, a person familiar with the matter told AFP.

The final amount of the settlement could be slightly different, the source said. (yhoo.it/2dfHX74)

Deutsche Bank and DoJ officials declined to comment.

The bank's U.S.-listed shares DB.N were up 13.4 percent at $13.02 in heavy midday trading. The stock rose as much as 15.16 percent, its best intraday percentage gain in nearly five years.

Deutsche Bank's Frankfurt-listed shares closed 6.4 percent higher at 11.57 euros after the AFP story emerged.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Ted Kerr)

 
A vintage clock with the logo of Deutsche Bank is pictured outside the bank's branch in Wiesbaden, Germany, January 28, 2015.  REUTERS/Kai Pfaffenbach/File Photo