American Crisis
The US Department of Justice has offered the Deutsche Bank to pay $14 billion in exchange for the termination of the investigation into the role of the largest German bank in the US mortgage crisis, which led to the world financial collapse in 2008. The press service of the bank itself reported receiving the proposal, noting that the United States minist was currently awaiting a response.
However, the Deutsche Bank does not intend to pay the claimed amount in full and even the amount close to the said amount.
" We expect that the final payment will be substantially lower, as has happened to several other banks. " Bank lawyers are likely to refer to Morgan Stanley and Goldman Sachs, who agreed with the Ministry of Justice to pay $3, 2 billion and $5, 1 billion respectively, writing. The Wall Street Journal.
However, the amounts are not always so small: for example, Citigroup Inc. and JP Morgan Chase together paid more than $20 billion, and the Bank of America was forced into 2014 break up. with $16, 65 billion These are pre-trial agreements. The American regulator ' s claim to all financial organizations is essentially the same: manipulation with mortgage bonds in 2005-2007 and conscious risk-filling to investors. In the case of Deutsche Bank, Fannie Mae and Freddie Mac, closely linked to the American Government, suffered losses.
Analysts estimate the amount of a possible Deutsche Bank deal with a US$5 billion minist, company lawyers plan to negotiate $2-3 billion.
It is not yet clear what part of the amount requested should be paid in cash and what would be compensable to the affected end-users: the borrowers tend to change mortgage conditions by facilitating payment. This is particularly relevant for clients who owe the bank more than their housing to date. In addition, some sources of The Wall Street Journal state that the United States Government has already received $1,9 billion from a German company in 2013 and that this fact can simplify the process now.
After the Deutsche Bank statement refusing to pay $14 billion at the request of United States officials, the value of the company ' s shares on the Frankfurt Stock Exchange fell by 8,47 per cent, to me11, 99 per paper.
This is largely due to the fact that by 20 June this year the bank ' s reserves for legal costs amounted to about $6,2 billion. Deutsche Bank planned to increase this amount by the end of the year, but if the United States regulator fails to agree, the need for payments can seriously impact one of the world ' s most stable lending organizations. As a whole, its shares have been low by 46 per cent since January 2016.
