Deutsche, which is Germany’s largest bank and employs around 100,000 people, has been engulfed by crisis after being handed the demand for up to $14 billion earlier in September by the Department of Justice (DOJ) for misselling mortgage-backed securities before the financial crisis. Shares in Deutsche Bank recovered somewhat on Friday from a record low early in the day after a report that it was close to a cut-price settlement of $5.4 billion instead of $14 billion. Germany's Finance Ministry declined to comment on Friday on a report that Deutsche Bank was close to a $5.4 billion settlement with U.S. authorities over alleged misselling of mortgage-backed securities. The government denied a newspaper report on Wednesday that it was working on a rescue plan for Germany's biggest bank, as its shares went into a tailspin fueled by a demand for up to $14 billion from U.S. authorities for misselling mortgage-backed securities before the financial crisis.
The Obama administration through the United States Department of Justice lowers the fine against Germany's Deutsche Bank to a settlement of US$5.4 billion after being handed a demand for up to $14 billion earlier this month over the sale of toxic mortgage bonds.