Deutsche Bank to Settle Mortgage Inquiry for $7.2 Billion
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John Cryan, chief executive of Deutsche Bank, at a conference in Berlin in June.CreditJohn Macdougall/Agence France-Presse — Getty Images
Deutsche Bank announced late on Thursday that it had reached a tentative $7.2 billion deal to resolve a federal investigation into its sale of toxic mortgage securities, capping months of negotiations that weighed heavily on the bank’s stock price and reputation.
The civil settlement requires the bank, Germany’s largest, to pay a $3.1 billion penalty and provide relief to American consumers valued at $4.1 billion, the bank said in a statement that came ahead of a formal announcement in the case. The consumer portion of the settlement, the bank said, is expected to be “primarily in the form of loan modifications and other assistance to homeowners.”…
Deutsche Bank to Settle Mortgage Inquiry for $7.2 Billion
