Deutsche Bank has confirmed that it has commenced negotiations with the Department of Justice in the United States with a view to seeking to settle civil claims.
These claims that the Department of Justice (DoJ) may consider in connection with the bank’s issuance and underwriting of residential mortgage-backed securities (RMBS) and related securitization activities happened between 2005 and 2007, according to Deutsche Bank on Friday.
No Intent
The bank confirms market speculation of an opening position by the DoJ of $14 billion and that the DoJ has invited the bank as the next step to submit a counter proposal.
Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts.
