Deutsche Bank has confirmed that the US Department of Justice (DoJ) has proposed a settlement of $14bn for its handling of residential mortgage-backed securities and related transactions.
However, the German banking giant said it has no intent to settle the claims near the proposed figure.
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“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts,” the bank said in a statement.
Deutsche Bank is among many banks probed over sale of residential mortgage-backed securities, which played a major role in the 2008 financial crisis.
The banks were accused of misleading investors about the quality of their loans by the US government.
Major US lenders including JPMorgan, Bank of America and Citigroup have already reached settlements with US authorities to settle these charges.
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