Deutsche BankPhoto: Bloomberg
The US Ministry of Justice demanded the Deutsche Bank to pay $14 billion for the 2008 mortgage crisis. This amount may be the largest fine imposed by the United States authorities on a foreign bank
The U.S. authorities demanded the largest bank in Germany, Deutsche Bank, to pay $14 billion in compensation for mortgage losses crisis Yes. The opening of negotiations with the U.S. Department of Justice was informed by commenting on the rumours in the market, the bank ' s own press service.
“Deutsche Bank has no intention of resolving possible civil actions close to the stated amount. Negotiations are just starting. The Bank expects that their outcome will be similar to the agreements reached on a similar issue with other banks that have been resolved at a substantially lower level " , as noted in Deutsche Bank ' s communication.
Previously, JP Morgan Chase analysts reported that if the Deutsche Bank was able to settle the claims of the United States Department of Justice, with a cost not exceeding $2,4 billion, the result would be " very positive " . If the price of the matter exceeds $4 billion, it would compel the bank to create additional reserves for judicial proceedings. Previously it was reported that Deutsche Bank had reserved 5 billion for possible payment of various fines.
After the closing of the substantive session of the New York Stock Exchange, the Deutsche Bank stock was cheap at 6.78 per cent to $13.76 per unit. In today ' s Xetra bidding, the value of Deutsche Bank's shares fell to me12, 03 per thing, 8, 24 per cent below the closing of yesterday's bidding.
The American authorities ' claims to large banks operating on the US mortgage market in the early 2000s relate to allegations that banks provided false information to their customers on the creditworthiness of the debtors, which resulted in Fannie Mae and Freddie Mac mortgage companies that were under the control of the Federal Housing Finance Agency.
In 2014, the United States Ministry of Justice reached an agreement on the settlement of disputes over involvement in the development of the mortgage crisis with the Bank of America. As part of the transaction, the bank, in exchange for the withdrawal of claims by the US Department of Justice, several federal agencies and six state authorities, undertook to pay a fine of $9, 65 billion in cash and to allocate an additional $7 billion for the construction of affordable housing, mortgage loans, etc.