Deutsche Bank has been asked to pay a fine of $14 billion by the US Department of Justice to settle an investigation into mis-selling of mortgage-backed securities. The malpractices by several leading banks are cited as the primary reason for the 2008 financial crisis. The verdict comes on the eighth anniversary of the fall of Lehman Brothers.
- In late 2013, Deutsche Bank agreed to pay $1.9 billion to settle claims that it defrauded U.S. government-controlled Fannie Mae and Freddie Mac, America’s biggest providers of housing finance, into buying $14.2 billion in mortgage-backed securities before the 2008 financial crisis
- The German finance ministry declined to comment directly on Deutsche’s situation, saying the negotiations were between two parties — the US justice authorities and the Bank. But, noting that the US authorities were negotiating with several banks, it said: “The German government assumes that a fair result will be achieved on the basis of equal treatment.
Deutsche Bank:
Deutsche Bank is a German global banking and financial services company with its headquarters in the Deutsche Bank Twin Towers in Frankfurt. It has more than 100,000 employees in over 70 countries, and has a large presence in Europe, the Americas, Asia-Pacific and the emerging markets.
In 2009, Deutsche Bank was the largest foreign exchange dealer in the world with a market share of 21 percent. The company was a component of the STOXX Europe 50 stock market index until being delisted on August 8th, 2016.
