US asks Deutsche Bank for $14bn to settle mortgage investigation www.bbc.com
The US Department of Justice is asking Deutsche Bank to pay $14bn 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."
The claim against Deutsche, which is likely to be negotiated for several months, far outstrips investor expectations.
The bank's shares fell more than 1.6% in after-hours 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.
A number of banks have settled with US authorities over mis-selling of mortgage-backed securities.
Morgan Stanley, Credit Suisse, HSBC, UBS have all paid out. Goldman Sachs settled for $5.1bn in January this year.
Published Date:2016-09-16