U.S. demanding $14 billion dollars from Deutsche Bank

Economy Nilgun Salim
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Deutsche Bank announced they are planning to pay up $14 billion dollars to the American Department of Justice in order to end an investigation linked to a selling of mortgage loans between 2005 and 2007. The only problem regarding the case is that the fine is actually three times bigger than Deutsche Bank initially predicted.

‘Deutsche Bank has no intention to end these civil claims to their required value. Negotiations just started’, the representatives announced on Friday.

‘The bank expects to pay a similar amount with the competing banks, which had significantly lower fines’, added Deutsche Bank.

The biggest German lender confirmed that the official negotiations with the American institution have started and they will try to reach a consensus.

The $14 billion dollars fine is considered by Deutsche as a starting point but it will certainly drop during the negotiations, according to Wall Street Journal.

The Deutsche Bank shares owned by American investors dropped by 6,5% at $13,80. The company’s shares also dropped by 42% in Germany.

The bank lost almost had of its market value in the last year, after reporting a substantial loss in 2015. The German lender is probably the less capitalized large bank in Europe.

The final agreement is going to be announced in the near future and the investors are afraid of how the German lender is going to lower a fine of that magnitude, considering the fact they already are in a shaky financial situation.

According to a press release published on Thursday night, the German bank has no intention of paying the impressive fine.