Deutsche Shares Jump On Report Of US Subprime Settlement

FRANKFURT, (APP - UrduPoint / Pakistan Point News -9th Sept,2016) : Shares in Deutsche Bank climbed by more than four percent Friday on reports the German lender was closing in on a settlement with US authorities over miss-selling mortgage-backed securities before the global financial crisis.

Germany's Manager Magazin did not mention a settlement figure but said it was likely to exceed the $2.4 billion (2.1 billion Euros) in civil fines paid by US bank Goldman Sachs in a similar case this year.

The US Department of Justice (DoJ) will send a 100-page document to Deutsche Bank next week laying out its complaint against the lender and its compensation demands, the monthly wrote. Investors welcomed the news, with Deutsche shares up 4.20 percent by 1415 GMT to make it the day's top climber on the Dax 30.

A bank spokesman declined to comment on the report when contacted by AFP. Deutsche Bank chief John Cryan said earlier this year he was keen to draw a line under the case, as the lender works to disentangle itself from a web of legal woes that have weighed on profits.

A string of major banks including JPMorgan and Bank of America have already paid out billions in fines for selling US housing mortgage-linked bonds as safe investments when they knew the underlying assets were toxic.

The US housing market then tanked in 2007 and 2008, causing huge losses for investors that spread to financial markets around the world, spiralling into the worst economic crisis since the Great Depression.