US Asks Deutsche Bank to Pay $14 Billion in Settlement, Bank Rejects

The US Department of Justice asked Deutsche Bank, Germany's biggest lender, to pay $14 billion to settle an investigation into the sale of residential mortgage-backed securities.

The company said it has no intent to pay the sum, tied to the bank's sale of mortgages between 2005 and 2007. Instead, the bank plans to negotiate the sum down in lengthy talks. Deutsche Bank hasn't revealed the sum it set aside in advance of a settlement. As of June 30, the bank held $6.2 billion, UPI reported today. 

Big U.S. banks, including Bank of America and Goldman Sachs, have paid billions for their mortgage activities before and during the financial collapse in 2008. The banks have been accused of fueling a rise in home prices that led to the financial crisis. Goldman Sachs and Bank of America paid$5.1 billion and $16.7 billion respectively to settle similar claims.

Source : QNA