Home Business Deutsche Bank to Pay $7.2 Billion Fine over Mortgage-Backed Securities

Deutsche Bank to Pay $7.2 Billion Fine over Mortgage-Backed Securities

0

Deutsche Bank has agreed a $7.2 billion fine over an investigation into mortgage-backed securities in the US.

The sum, which needs final approval, is far lower than the $14 billion the US authorities had asked the German bank to pay in September.

That fine had caused concerns that a failure of Deutsche Bank could pose a risk to the global financial system.

Credit Suisse also announced a similar deal, while Barclays is now under investigation too.

The sale of residential mortgage-backed securities played a significant role in the 2008 financial crisis.

Several banks in the US have been subject to investigations over allegations of giving mortgages to unqualified borrowers, then repackaging those loans as safe investments and selling the risk on to others. The inquiries related to deals done between 2005 and 2007.

Meanwhile, Credit Suisse has said it has agreed a $5.28 billion deal to settle its own dispute with US authorities over mortgage-backed securities.

Credit Suisse will pay US authorities $2.48 billion, and will also give consumers $2.8 billion in compensation over the next five years.

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

NO COMMENTS

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.