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Deutsche Bank Nearing Multi-Billion Dollar Settlement with U.S. Dept. of Justice

posted by martyb on Sunday October 02 2016, @11:21PM   
from the let-the-fine-match-the-crime dept.

An Anonymous Coward writes:

http://www.reuters.com/article/us-usa-stocks-weekahead-idUSKCN1202O8

Deutsche Bank will likely cast a pall over equity markets next week as the largest German lender navigates a possible multi-billion dollar settlement with the U.S. Department of Justice [DOJ] over the sale of mortgage-backed bonds. Deutsche shares traded in the United States hit a record low on Thursday, falling as much as 24 percent since the DOJ asked the bank to pay $14 billion to settle charges related to its sale of toxic mortgage bonds before the financial crisis.

But the stock had its best day in five years Friday, on record volume, after news agency AFP reported that Deutsche was nearing a much-lower $5.4 billion settlement with the DOJ. Analysts at Morgan Stanley estimated Deutsche could pay about $6 billion to settle with the DOJ.

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Original Submission

• Who's mortgage backed bonds? Who's mortgage backed bonds? (Score: 2) by frojack on Monday October 03 2016, @12:36AM

  by frojack (1554) on Monday October 03 2016, @12:36AM (#409197) Journal

  Are these German mortgages and German bonds? Or they repackaging toxic American Loans left over from the forced lending to unqualified borrowers that cause the trouble in US banks?

  TFS and TFA are pretty unclear as to why the DOJ is even involved.

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• Re:Who's mortgage backed bonds? (Score: 2) by sjames on Monday October 03 2016, @02:33AM

  by sjames (2882) on Monday October 03 2016, @02:33AM (#409223) Journal

  Those loans were NOT forced. The lenders couldn't get enough of them, they were like stoners in the junk food isle.

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