Friday 23 December 2016 6:59 am

Deutsche Bank and Credit Suisse share prices rise after multi-billion pound settlements with US Department of Justice

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

Read more: Ex-Deutsche Bank trader accused of manipulating markets

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.

Read more: Deutsche Bank flogs Mexican business

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.

Read more: Boom: Credit Suisse profits smash expectations

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.