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Germany wants Deutsche Bank DoJ fine wrapped up ASAP, as lender reaches settlement with SEC on another issue

Hayley Kirton
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The bank has been left in limbo over the potential mega fine (Source: Getty)

Deutsche Bank's investors are not the only ones who want a swift settlement on the US Department of Justice fine, as German officials have today spoken out calling for a deal to be done.

The German lender is currently facing a potential penalty of $14bn (£11.5bn) for mis-selling mortgage-backed securities.

Many had hoped chief executive John Cryan would reach a settlement while he was in the US for the joint meeting of the International Monetary Fund and the World Bank, and share price dropped on Monday morning when investors realised he had left empty handed.

Now German officials have told Bloomberg the unsettled fine is hindering the bank's restructuring efforts.

"Once Deutsche Bank has settled with the Americans, it can once again concentrate on its tasks at hand," said Michael Fuchs, the deputy parliamentary leader of Angela Merkel's Christian Democrats.

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The bank's share price has been on a rollercoaster ride ever since reports appeared in the German media last month indicating Chancellor Merkel would not be willing to offer the bank state assistance.

Reports have previously emerged suggesting the DoJ is keen to reach an agreement with Deutsche Bank, along with Barclays and Credit Suisse, before the US presidential elections take place in November. It has also been suggested that Deutsche may be closing in on a settlement nearer to $5.4bn.

Meanwhile, Deutsche Bank has also reached a $9.5m settlement with the Securities and Exchange Commission (SEC) today for failing to properly safeguard research information.

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"Information generated by research analysts such as ratings, views, estimates, and trading recommendations can move markets," said Antonia Chion, associate director of the SEC division of enforcement. "Broker-dealers must maintain and enforce policies and procedures that are reasonably designed in light of the nature of their business to prevent the misuse of such information."

Deutsche Bank declined to comment on the Bloomberg article, but a spokesperson said of the SEC fine:

We are pleased to have resolved this matter. The Bank takes its research analyst communications and conduct very seriously and has had a robust policy and control framework. In response to the SEC's concerns, further enhancements were implemented.

Read more: Deutsche Bank's €46 trillion exposure? That's "completely misleading"...

Shares in the bank rose 0.4 per cent to €12.35 today.

The press and information office of German's federal government has not responded to City A.M.'s request for comment.

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