US DOJ Demands $14B From Deutsche Bank, Deutsche Bank Balks At Sum

By:
Chris Gaetano
Published Date:
Sep 16, 2016
Deutsche-Bank-Frankfurt-am-Main

The U.S. Department of Justice is demanding that Deutsche Bank hand over $14 billion for its alleged role in the 2008 financial crisis, but the German financial institution said it has no intent of paying anything close to that sum, according to Bloomberg. The bank, which is the largest lender in Germany, is seeking to settle civil claims with the government over its role in issuing and underwriting residential mortgage backed securities prior to the 2008 crash, said Bloomberg. If it paid the entire sum, it would be the second largest settlement linked to the financial crisis, second only to Bank of America, which settled with the DOJ for $17 billion. But Deutsche Bank said it will not pay that sum, as it views the $14 billion demand as merely the first step in an ongoing negotiation with the government. Opening bids are generally much higher than the final outcome, noted Bloomberg--the government initially wanted $57 billion from Bank of America. Markets are still troubled by this development, though. Bloomberg reported that its stock soon fell by 8.8 percent, and its tier one bonds dropped by six percent. 

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