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Deutsche and Credit Suisse pay billions over mortgage backed securities


Deutsche Bank has paid $7.2bn (£5.9bn) to US authorities to settle an investigation into mortgage-backed securities.

The US had asked the bank to pay $14bn in September, but has now struck a deal with the bank that some predicted could present a threat to the global financial system if it was forced to pay the full amount of fines.

$4.1bn of the settlement will take the form of consumer relief to help US homeowners.

Deutsche’s share price rose nearly 4 per cent in early trading.

Other banks also faced continued regulatory activity over mortgage-backed security sales last night, as Credit Suisse agreed a $5.28bn settlement – $2.8bn to go back to consumers in the form of compensation – and Barclays will be the subject of a US Department of Justice lawsuit over allegations of mortgage securities fraud.

In a statement the DOJ says Barclays  “repeatedly misrepresented the characteristics of the loans backing securities they sold to investors throughout the world, who incurred billions of dollars in losses”.


FCA fine against fund manager upheld in court

A Tribunal decision has upheld the FCA’s fine and partial ban against a fund manager from Somerset Asset Management. Last November, the FCA imposed a partial ban on Tariq Carrimjee following a decision in March 2015 that found he had failed to act with due skill, care and diligence in his responsibility for compliance oversight at the firm. Carrimjee […]


Banks face multi-billion pound fines over mortgage misselling

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 […]


PwC fined £2.3m over sub-prime lender audit failures

PricewaterhouseCoopers has been fined £2.3m by the Financial Reporting Council for mishandling the auditing of failed sub-prime lender Cattles and its subsidiary Welcome Financial Services. PwC audited the financial statements of Cattles and Welcome for 2007. The FPC has since carried out a disciplinary case about how PwC and the then audit engagement partner Simon […]

CGT entrepreneurs' relief

Entrepreneurs’ relief is due, subject to meeting certain conditions, in respect of capital gains arising on ‘material disposals of business assets’. These ‘business assets’ include: Read more


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. I have some difficulty getting my head round this.
    These banks wrapped up mortgages and flogged them on. OK. They were aware that these were flaky. BUT they didn’t issue these mortgages – other financial institutions did. They did so as a result of President Clinton loosening the reins and Fanny May and Freddy Mac – amongst many others – were granting mortgages to anyone that had a pulse. So why weren’t these people brought to book – and why no blame for Teflon Bill? Why hasn’t the press asked these questions? Indeed why hasn’t anybody at all asked them?

  2. Northern Powerhouse 23rd December 2016 at 2:32 pm

    In my opinion the loosening of the strings occurred much earlier. DB, Barclays and all the others were also writing these mortgages so they are absolutely culpable. However, the real guilty parties in this are the rating agencies, who throughout were informing investors in these MBS that the investments were AAA. Had the rating agencies bothered to look properly at these packages and given them the junk ratings they deserved, there would not have been a global economic crisis.

  3. Thats the game Harry. Some bureaucrat wants to make a name for himself so finds a ‘wheel’.
    Look what happened to BP. Billions claimed for loss of earnings with companies hundreds of miles from the Gulf of Mexico claiming loss through contamination.
    Contamination that has proved remarkably short lived with the marine life rebounding at a remarkable rate. Proving the dire warnings of decades of problems from all the ‘experts’ to be unfounded.
    These fines are in reality fund raising expeditions by Govt. bodies and serve the instigators promotion prospects.

  4. Sorry should have read ‘wheez’ ! Overenthusiastic spell check.

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