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US seeks joint settlement of banks' mortgage claims: FT

Friday, September 30, 2016 - 14:03
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The US Department of Justice hopes to agree a combined settlement with Deutsche Bank AG, Barclays Plc and Credit Suisse Group AG, extracting multibillion dollar fines from the three European banks for mis-selling mortgage securities, the Financial Times reported Friday.

[SINGAPORE] The US Department of Justice hopes to agree a combined settlement with Deutsche Bank AG, Barclays Plc and Credit Suisse Group AG, extracting multibillion dollar fines from the three European banks for mis-selling mortgage securities, the Financial Times reported Friday.

Grouping the three banks together could secure maximum publicity for the large penalties ahead of the US presidential election, the newspaper said.

Deutsche Bank's stock and debt have been under pressure after the Justice Department this month requested US$14 billion to settle an investigation into residential mortgage-backed securities. The bank has said it expects to negotiate that lower, as other Wall Street banks have.

A combined settlement with the two other banks could shift some attention away from Deutsche Bank, the Financial Times said.

Amy Chang, a spokeswoman for Deutsche Bank in Hong Kong, declined to comment.

Spokesmen for Barclays and Credit Suisse couldn't immediately be reached for comment.

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