LONDON (Reuters) - Shares in Deutsche Bank (DBKGn.DE) surged about 6 percent just before the market closed on Friday, lifting European stocks and the euro currency as well, after a media report said an agreement with U.S. authorities to slash huge fines over alleged misselling of mortgage-backed securities was being discussed.
Traders cited a report by Agence France Presse that said Deutsche Bank was near a $5.4 billion (£4.17 billion) settlement with the U.S. Department of Justice. News last week that the U.S. government would levy a fine as high as $14 billion sent Deutsche’s share price plummeting to record lows.
Deutsche Bank declined to comment on the media report.
Earlier, U.S. investment bank JP Morgan said it also estimated the U.S. fine could be reduced to $5.4 billion. But it said Deutsche would not have enough current reserves to pay a fine that was more than $4 billion and would have to raise more capital if so.
Reporting by Sudip Kar-Gupta. Editing by Mike Dolan