US wants Deutsche Bank to pay $14 billion to settle toxic mortgage

Deutsche Bank has received from the US authorities the request to pay $ 14 bn to close the case into mortgage-backed securities. As reported by the Wall Street Journal, the facts are previous to the outbreak of the 2008 crisis that led to the failure of Lehman Brothers. Certainly, if the figure is confirmed, it would not only among the highest paid to resolve similar issues but it would much over analysts' expectations.

Immediately the bank replied, indicating that the amount claimed is unacceptable. “Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited,” the note said. “The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts.”

The news comes at a difficult time for Deutsche Bank: the German lender has lost about 43% of its market value this year. Net income decreased to €18 million from €796 million a year earlier, the group announced in July.

Other big banks have reached deals in recent years with U.S. authorities over their mortgage activities in the run-up to the financial crisis. Earlier this year, Goldman Sachs agreed to pay $5.1 billion to put to rest claims over its dealings.
Deutsche Bank share opened down 8% in Germany on Friday.