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Deutsche Bank nears $5.4 billion settlement over mortgage bonds: AFP
September 30, 2016 / 4:10 PM / in a year

Deutsche Bank nears $5.4 billion settlement over mortgage bonds: AFP

(Reuters) - Deutsche Bank AG (DBKGn.DE) is nearing an agreement with U.S. officials to pay $5.4 billion to settle charges related to its sale of toxic mortgage bonds before the financial crisis, French news agency AFP reported on Friday, citing sources.

A vintage clock with the logo of Deutsche Bank is pictured outside the bank's branch in Wiesbaden, Germany, January 28, 2015. REUTERS/Kai Pfaffenbach/File Photo

Germany’s largest lender said about two weeks ago it would fight a $14 billion demand from the U.S. Department of Justice to settle claims it missold the securities.

An agreement could be announced in the next couple of days, a person familiar with the matter told AFP.

The final amount of the settlement could be slightly different, the source said. (yhoo.it/2dfHX74)

Deutsche Bank and DoJ officials declined to comment.

The bank’s U.S.-listed shares (DB.N) were up 13.4 percent at $13.02 in heavy midday trading. The stock rose as much as 15.16 percent, its best intraday percentage gain in nearly five years.

Deutsche Bank’s Frankfurt-listed shares closed 6.4 percent higher at 11.57 euros after the AFP story emerged.

Reporting by Sruthi Shankar in Bengaluru; Editing by Ted Kerr

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