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”.