Deutsche Bank Shares Fell Sharply on the Stock Market

Economy Nilgun Salim
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Deutsche Bank failed to reach an agreement with the US to close an investigation. They are investigating the mortgages granted before the crisis. Shares of Deutsche Bank, the largest bank in Germany, had fallen sharply on Monday morning.

General Director of Deutsche Bank, John Cryan, failed to reach an agreement with the Justice Department of the United States to close an investigation related to transactions with bonds secured by mortgages before the 2008 financial crisis, the most German bank faces a fine of up to $14 billion, Bild am Sonntag newspaper said, quoted by Bloomberg. The meeting was held on Friday.

The meeting between Cryan and the representatives of American justice was meant to negotiate the fine of several billion dollars that the bank will have to pay to end the allegations. The Department of Justice fined Deutsche Bank with $14 billion, a sum which the bank says it does not intend to pay.

The Bank is still analyzing whether to seek damages from the former CEOs, Anshu Jain and Josef Ackermann. According to Bild, Deutsche Bank has blocked some of the bonuses in the millions of euros that would have had to pay to Jain and other executives in the top management of the bank.

A Deutsche Bank spokesman declined to comment on the outcome of the discussions on Friday or the withdrawal of the director compensations.

Shares of Deutsche Bank, the largest bank in Germany, has fallen sharply on Monday morning, in the stock market, given that the bank has not reached an agreement with the US authorities on reducing the huge fine received from the US Department of Justice.

The Bank recorded the biggest drop on the stock exchange in Germany of large companies. At the beginning of the trading session, the value loss was over 2%.