U.S. authorities filed the largest Bank of Germany Deutsche Bank a requirement to pay them $14 billion in compensation for losses resulting from the mortgage crisis of 2008. About the beginning of negotiations with the U.S. Department of justice said, commenting on emerged in the market rumors, the press service of the Bank.
Payments to the U.S. justice Department required that $14 billion, Deutsche Bank would set a new record paid by a foreign Bank a penalty, informs Bi-bi-si. However, the Bank has assured that to go on record for not going.
“Deutsche Bank has no intention to settle possible civil claims close to the stated amount level. Negotiations are just beginning. The Bank expects that the result will be similar to the arrangements made for a similar matter with other banks, claims to which were regulated on a much lower level,” the report says Deutsche Bank.
Earlier, analysts at JPMorgan Chase said that if Deutsche Bank will be able to settle claims by the U.S. justice Department spent more than $2.4 billion, the result of the market is perceived very positively”. If the price of the issue will exceed $4 billion, it will force the Bank to create additional reserves for litigation. Earlier it was reported that Deutsche Bank reserved for possible payment of various fines of €5.5 billion.
At the end of night auction held after the closure of the main session on the new York stock exchange, shares of Deutsche Bank fell by 6.78% to $13,76 per share. During today’s trading in the Xetra system the value of the shares of Deutsche Bank fell to €of 12.03 per piece, which is 8.24% below yesterday’s closing level.
The claims of the American authorities to the big banks, who worked in the early 2000-ies on the US mortgage market, associated with the charges that banks would give their clients false information about the creditworthiness of debtors, with the result that under the control of the Federal Housing Finance Agency (FHFA) mortgage lenders Fannie Mae and Freddie Mac suffered losses in excess of $30 billion, which subsequently had to reimburse the American taxpayer.
In 2014, the U.S. justice Department reached settlement agreements about the involvement in the development of the mortgage crisis with Bank of America. As part of the transaction the Bank in exchange for withdrawal of claims from the U.S. Department of justice, several Federal agencies and authorities and the six States agreed to pay a fine of $9,65 billion in cash and to allocate about $7 billion for the construction of affordable housing, benefits to mortgage borrowers, etc.
Earlier deal with the US authorities went to the banks JPMorgan Chase and Citigroup, paid for the waiver of prosecution of $13 billion and $7 billion respectively.