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Deutsche Bank agrees on settlement of 7.2 bln USD with U.S. regulator

Xinhua, December 23, 2016 Adjust font size:

Germany's major commercial bank Deutsche Bank announced on Friday that it has agreed to pay a total of 7.2 billion U.S. dollars to cease the civil claims regarding the bank's issuance and underwriting of residential mortgage-backed securities (RMBS) and related securitization activities between 2005 and 2007.

The sum includes a civil monetary penalty of 3.1 billion dollars and an additional 4.1 billion dollars in consumer relief.

The charge of total 7.2 billion U.S. dollars is far less than the previous charge of reportedly around 14 billion U.S. dollars by the U.S. regulator in September.

Deutsche Bank said in its statement that a pre-tax charge of about 1.17 billion U.S. dollars would be recorded in the financial results for the fourth quarter 2016 due to the civil monetary penalty, whereas the consumer relief would not have a material impact on financial results of 2016.

The share price of Deutsche Bank has so far recovered to above 18 euros from the historical lowest level of below 10 euros in late September when the concern about the bank's affordability swept over financial market.

The bank will publish its preliminary results for the 2016 financial year as scheduled on Feb. 2 next year. Endit