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Deutsche Bank Sets Aside $1.3 Billion, Mostly for Subprime Probe

  • DOJ probing how bank marketed mortgage-backed securities
  • Litigation cost for 2015 rose 165% to $5.7 billion vs 2014
Bloomberg business news

Deutsche Bank’s 1.15 Billion Euro Problem...

Deutsche Bank AG set aside an additional 1.2 billion euros ($1.3 billion) in the fourth quarter as it prepares to resolve a series of long-running regulatory investigations, including whether it improperly sold mortgage-backed securities to investors.

"We’re working very hard on a number of cases where there are signs that we might be able to resolve them relatively soon,” Chief Executive Officer John Cryan told reporters at a press conference in Frankfurt. The next two years will "be burdened with, sadly, either direct costs or more provisions," he said.