Deutsche Bank Expected to Pay $2.4bn to Settle DoJ Investigation

Deutsche Bank is expected to face a demand to pay about $2.4bn to settle the US Department of Justice’s investigation into alleged mis-selling of mortgage-backed securities, according to two people briefed on the matter. Germany’s biggest bank said in July that it had started talks with the DoJ to settle the investigation. One person briefed on the matter said the bank was preparing for a settlement in the fourth quarter, potentially as early as next month. Deutsche declined to comment. Shares in Deutsche rose 4 per cent on Friday after Manager Magazin reported that the bank was expected to receive a demand to pay more than $2.4bn to settle the DoJ’s probe of the alleged mis-selling, which happened in the run-up to the financial crisis. A deal with the DoJ would remove one of the biggest legal uncertainties hanging over Deutsche, leaving a joint US-UK probe into alleged mirror trades involving its Russian business as its last big unresolved litigation issue.

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