Oct
06
Deutsche Bank’s $14 Billion Scare
By-
Justice officials had envisioned $3 billion mortgage penalty
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U.S. added prosecutors and gave RMBS cases a new overseer
This summer, U.S. Justice Department officials working on a mortgage securities investigation of Deutsche Bank AG expected the bank to settle the matter for $2 billion to $3 billion, according to people with knowledge of the matter.
Then came last month’s news that the government had opened settlement talks by asking for $14 billion, a figure that Deutsche Bank said it wouldn’t pay. That September surprise roiled markets and pushed the German lender’s shares to a record low as investors asked whether it would have to raise capital to meet the U.S. demand, even as it grapples with other potentially costly investigations…
Deutsche Bank’s $14 Billion Scare
