Deutsche Bank is getting walloped

Screen Shot 2016 09 15 at 6.10.53 PMDeutsche BankLitigation reserves

Deutsche Bank shares are crashing after a The Wall Street Journal reported said
that it has been asked to pay $14 billion to resolve a probe into mortgage securities.
Deutsche Bank shares slumped in after-hours trading in New York, falling more than 7%.

The report, from Aruna Viswanatha, Jenny Strasburg and Eyk Henning, said the US Justice Department proposed a “preliminary” figure for Deutsche Bank to settle a series of mortgage-securities probes.

The number is far beyond Deutsche Bank’s own expectations, according to The Wall Street Journal.

Deutsche Bank said in its second quarter earnings that it had 5.5 billion euros ($6.2 billion) in litigation reserves set aside.

The ultimate settlement could be lower, but it is unclear what the final amount will be, nor how much of that amount will be paid in cash or in consumer relief, The Wall Street Journal reported.

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