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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.

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Germany’s biggest bank, Deutsche Bank, has announced a 15,000 job cuts after a €6 billion loss in Q3 of 2015.

The bank said it would cut 9,000 full-time jobs and 6,000 contractor roles.

Deutsche Bank is also planning to sell businesses employing 20,000 people over the next two years.

By 2018, “we expect to see the benefits of our hard work and potentially be in the midst of a powerful turn-around,” said John Cryan, co-chief executive.

The cuts represent just less than 15% of the firm’s total workforce.

Deutsche Bank’s shares fell 5.5% in Frankfurt trading on October 29.Deutsche Bank job cuts 2015

The bank is trying to cut €3.8 billion of annual costs as European banks struggle with sluggish economic growth in their home markets and stricter regulation.

In times of low growth, reducing costs through job cuts is seen as a way to improve profits.

Deutsche Bank also plans to spin off Postbank with a stock market listing and sell its 20% stake in China’s Hua Xia Bank.

It has also said it will stop dividend payments for 2015 and 2016.

John Cryan told a news conference that the bank faced “hard decisions” as it was restructured.

“We must reduce Deutsche Bank’s complexity,” he added.

Deutsche Bank said it would close businesses in Malta, Argentina, Chile, Mexico, Finland, Peru, Uruguay, Denmark, Norway, and New Zealand. Some branches in Germany would close as well, John Cryan said.

The third-quarter loss was caused by more than €5.8 billion of charges in write downs and legal expenses at its investment bank and on assets it wants to sell, as well as higher litigation charges.

Of the 9,000 full-time job cuts, about 4,000 will take place in Germany.

Deutsche Bank employed 98,000 people as of the end of 2014, according to its annual report.

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Commerzbank has announced it will charge big corporate clients fees if they hold substantial deposits at the bank.

The German bank is the first major bank to make such a move and says it will encourage big clients to move cash into alternative investments.

Private savers and small and medium sized businesses will not be affected by the policy.

In June the European Central Bank (ECB) said that banks would have to pay to park money at the central bank.

That negative interest rate was an effort to spur banks and other financial institutions to lend money rather than leave it on deposit.

In September it made holding money at the ECB even less attractive by cutting the rate on overnight deposits to minus 0.2%.

Commerzbank’s has become the first private bank to mirror that move.

“We reserve the right to charge some large corporates a fee on parked liquidity,” Commerzbank said in a statement.

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