Dept. of Justice demands $14 billion from Deutsche Bank for wrongful mortgage backed securities. Deutcshe says: NO

The United States Department of Justice has made a $14 billion demand to settle claims it wrongfully sold mortgage-backed securities. Deutsche banks response was that it would fight rather than pay that amount. The bank has had other financial stressors and had recently announced the need to cut costs as revenue fell in the second quarter due to low interest rates. Deutsche Bank shares, lost  half their value this year. The DOJ has been tough on banks in these kinds of negotiations. However, this may be an opening salvo. In 2014 DOJ demanded $12 billion from Citigroup and it paid $7 million in the end. $14 billion fine would be of the largest paid by banks to U.S. authorities in recent years. The bank has not announced what it has set aside in anticipation of a settlement over the sale and packaging of resident mortgage-backed securities before 2008.

Jeffrey Newman represents whistleblowers