US Seeks $14 Bn From Deutsche Bank Over Mortgage Bonds: Source

US seeks $14 bn from Deutsche Bank over mortgage bonds: source

NEW YORK, (Pakistan Point News - APP -16th Sept,2016) - Authorities in the US are seeking as much as $14 billion from Deutsche Bank to resolve allegations stemming from the sale of mortgage securities in the 2008 crisis, a source close to the matter told AFP. The payout would be the largest ever inflicted on a foreign bank in the United States, easily surpassing the $8.9 billion that the French bank BNP Paribas paid in 2014 for sanctions violations.

In a quick reaction, Deutsche Bank said the $14 billion figure was an opening proposal in settlement talks with US prosecutors, but the bank said it had "no intent" to agree to a sum "anywhere near" the figure. "The negotiations are only just beginning," the statement said. "The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts." The US Justice Department declined to comment. The source, speaking on condition of anonymity, told AFP the final amount could be lower as negotiations proceed.