Deutsche Bank Riskiest Bonds Sink as DOJ Seeks $14 Billion Fine

Deutsche Bank AG’s riskiest bonds plummeted after the German lender received a $14 billion claim from the U.S. Justice Department to settle an investigation into the firm’s sale of residential mortgage-backed securities.

The bank’s 1.75 billion euros ($2 billion) of 6 percent additional Tier 1 bonds, the first notes to take losses in a crisis, fell 4 cents to 80 cents on the euro, the biggest intraday-day drop since July 6. The bank’s 650 million pounds ($858 million) of 7.125 percent notes fell 5 pence to 83 pence on the pound, the most since Britain voted to leave the European Union in June.