The US Justice department and Germany’s largest bank reached a multi-billion-dollar agreement. Previously, the US Justice department sought a much higher settlement. It demanded $14 billion due to the bank’s quality of its loans. This would have been the largest pay out in history ever inflicted on a foreign bank in the US. Till today, the largest amount was in 2014, where the French bank, BNP Paribas paid $8.9 billion.
The Deutsche Bank will be paying 3.1 billion dollars in civil penalties and 4.1 billion dollars relief to its consumers. Due to the news of this settlement the bank’s shares increased up to 4%. This settlement resolved a yearlong US investigation into the bank’s dealings in residential mortgage-backed securities and several other activities during the past years.