Deutsche Bank To Settle DOJ Claim This Week, Below $14 Bln Demanded: Reuters

Deutsche Bank AG is set this week to settle a claim with U.S. authorities over the bank's alleged misselling of mortgage-backed securities in the run-up to the financial crisis, according to Reuters. A source told the news outlet there is a good chance Deutsche Bank will reach an agreement with the U.S. Department of Justice before Christmas, possibly as early as Wednesday. The source also said the bank is set to pay a penalty well below the $14 billion the DOJ initially demanded. The justice department in September asked the German lender to pay $14 billion to settle claims connected with the bank's issuance and underwriting of residential mortgage-backed securities between 2005 and 2007. At the time, Deutsche Bank said it had "no intent" to settle "anywhere near the number cited." A representative from Deutsche Bank wasn't immediately available to comment on Monday.