Deutsche Bank to pay $7.4b for mortgage sales charges

  • 01/10/2016
The Deutsche Bank building (Getty)
The Deutsche Bank building (Getty)

Deutsche Bank AG is nearing an agreement with US officials to pay $US5.4 billion ($A7 billion) to settle charges related to its sale of toxic mortgage bonds before the financial crisis, French news agency AFP reports, citing sources.

Germany's largest lender said about two weeks ago it would fight a $US14 billion demand from the US 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.

Deutsche Bank declined to comment on the report and a spokesman for the DoJ did not immediately respond to a request for comment.

The bank's US-listed shares were up 13.7 percent at $US13.05 in heavy midday trading.

The stock rose as much as 15.16 percent, its best intraday percentage gain in nearly five years.

Reuters

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