Deutsche Bank CEO apologizes for conduct in toxic mortgages case

Features Reuters

Deutsche Bank CEO John Cryan addresses the bank's annual general meeting in Frankfurt, Germany, May 19, 2016. REUTERS/Kai Pfaffenbach (Copyright Reuters 2017)

Deutsche Bank's chief executive apologized on Tuesday for the bank's selling and pooling of toxic mortgage securities in the run-up to the 2008 financial crisis, which prompted a $7.2 billion settlement with the United States.

Continue Reading Below

"Our conduct in this matter, which occurred from 2005 to 2007, falls short of our standards and is unacceptable. We apologize unreservedly for it," John Cryan, who took over as CEO in July 2015, wrote in an emailed statement.

"We have subsequently exited many of the underlying activities and comprehensively improved our standards. As we enter 2017, we are pleased to have resolved this matter."

The U.S. Department of Justice said earlier that Deutsche Bank would pay a civil monetary penalty of $3.1 billion and provide $4.1 billion in consumer relief to homeowners, borrowers and communities harmed by its practices.

(Reporting by Kathrin Jones; Writing by Georgina Prodhan; Editing by Ruth Pitchford)