Deutsche Bank signs $7.2 billion deal with U.S. over risky mortgages

Reuters News
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Posted: Jan 17, 2017 2:53 PM

NEW YORK (Reuters) - Deutsche Bank <DBKGn.DE> has signed a $7.2 billion settlement with the U.S. Department of Justice over its sale and pooling of toxic mortgage securities in the run-up to the 2008 financial crisis, the government agency said on Tuesday.

The Frankfurt-based bank announced it had reached the agreement in principle with U.S. authorities on Dec. 23. The agreement offered some relief to the German lender, whose stock price was hit hard in September after it acknowledged the Justice Department had been seeking nearly twice as much.

As part of the final agreement, Deutsche Bank will pay a civil monetary penalty of $3.1 billion and provide $4.1 billion in consumer relief to homeowners, borrowers and communities harmed by its practices.

(Reporting By Karen Freifeld; Editing by Bernard Orr)