Deutsche Bank Reaches A Relieved $7.2B Settlement In Mortgate Probe
Shares of Deutsche Bank rose 3.02% in pre-market trading on Friday after the bank’s Frankfurt headquarters early Friday announced a $7.2 billion settlement with the U.S. Department of Justice over its allegations of the mis-selling of mortgage-backed securities (MBS) in the run-up to the 2008 financial crisis.
Germany’s largest lender will have to pay a civil monetary penalty of $3.1 billion provide $4.1 billion in consumer relief as part of the agreement. The announcement of the fine has offered some relief to investors betting in the German lender, as the Justice Department in late September had claimed $14.0 billion for the settlement, which is nearly twice as much as the Friday’s deal.
According to the bank’s press release, it expects a pretax charge of about $1.17 billion in its fourth quarter stemming from the civil monetary penalty.
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