Banks face multi-billion pound fines over mortgage misselling

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Barclays, Deutsche Bank and Credit Suisse are expected to be hit with multi-billion pound fines for misselling mortgage-backed securities in the run-up to the financial crisis.

The Financial Times reports the US Department of Justice is hoping to agree a single settlement with the banks ahead of the US presidential election.

It comes as investors become increasingly nervous about the financial stability of Deutsche Bank, after an initial demand for the bank to pay $14bn (£10.8bn) was leaked.

Deutsche Bank has built up reserves of €5.4bn (£4.7bn), while Barclays has set aside £2.5bn for investigations and litigation and Credit Suisse has made provisions of SFr1.76bn ($1.82bn).

All three banks and the DoJ declined to comment to the newspaper.