Deutsche Bank and Credit Suisse's share prices have risen this morning after the two lenders agreed to multi-billion dollar settlements with the US Department of Justice (DoJ).
Deutsche Bank announced it had reached a $7.2bn (£5.8bn) agreement in principle with the US authorities early this morning over the sale and pooling of mortgage-backed securities in the run-up to the financial crises.
In a separate case, Credit Suisse has reached a similar deal with the justice department, agreeing to pay $5.3bn.
And keen to clear its desk before the Christmas break, the DoJ also revealed it is suing Barclays and two former executives last night over similar claims.
Deutsche Bank's share price rose more than four per cent in early morning trading in Frankfurt, to €18.51 per share, though it lifted to €18.59 at the open. Credit Suisse's was up 1.6 per cent to €15.58 in Swiss trading.
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Deutsche Bank will pay a civil monetary penalty of $3.1bn and provide $4.1bn in consumer relief, such as loan forgiveness, as part of its payment.
The German lender cautioned that there is "no assurance" the two sides will agree on the final documents.
Settling the mortgage-securities case would mean Deutsche Bank has shaken off one legal headache – however, three major probes remain.
Deutsche faces investigations into the alleged manipulation of foreign exchange rates, suspicious equities trades in Russia, as well as alleged violations of US sanctions on Iran and other countries.