REPORT: Barclays, Deutsche Bank and Credit Suisse face billions in fines before the US election

The US is seeking a deal to fine Barclays, Credit Suisse and Deutsche Bank billions of dollars before the November election, according to a report in the Financial Times.

The banks face fines from the US Department of Justice, led by Attorney General Loretta Lynch, for the illegal sale of mortgage bonds in the US before the 2008 financial crisis.

The DOJ is attempting to wind up a triple deal “to achieve maximum public impact” before the US goes to the polls in November, the FT said.

Shares in Deutsche Bank have plummeted since it was revealed that the US started negotiations for Deutsche Bank’s settlement at $14 billion — roughly the same as the bank’s entire stock market value.

Here’s how Deutsche Bank shares have reacted to the reports on its fine so far:


According to reports from Bloomberg News, hedge funds have begun to reduce their exposure to the bank to protect their cash in case the lender fails. About 10 funds have withdrawn cash and shifted some of their derivatives to different banks, according to the reports.

Germany won’t grant any more government funds for its ailing banks, a senior lawmaker in Chancellor Angela Merkel’s conservative bloc said on Thursday, after the government denied it was working on a rescue plan for Deutsche Bank.

Hans Michelbach, a financial expert in Bavaria’s Christian Social Union said: “I cannot imagine that the state will repeat something like that.”

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