US Department of Justice claims USD 14 billion from Deutsche Bank for dropping lawsuits.
Deutsche Bank is ready to pay USD 7.2 billion to US Department of Justice on the mortgage-secured bonds case, according to the bank’s message, Korrespondent.net reports quoting Reuters.
The amount, indicated by the bank, is twice less than the amount, which was initially claimed by US Department of Justice this September – USD 14 billion.
Deutsche Bank is ready to pay USD 3.1 billion as the civil money penalty and other USD 4.1 billion – to the benefit of US clients, who suffered losses.
It is noted that this figure is not final.
It was previously reported that for the first time for seven years, Deutsche Bank ended the year with losses, amounting to EUR 6.772 billion versus the last year’s profit (EUR 1.691 billion).
The large US banks paid billions of dollars on the cases, associated with deception of investors regarding the quality of mortgage securities. Bank of America became the top performer with USD 16.6 billion.
Deutsche Bank already addressed accusations of US law enforcement in terms of mortgage securities and paid USD 1.9 billion on this case in 2013.
The banks are accused of issuing derivatives, based on mortgage liabilities of households and positioned these bonds as high-rated, stimulating the housing market bubble. US authorities made banks pay fines and partially reimburse clients’ losses.
