How To Guide For: A Look At The Deutsche Bank Settlement With DOJ On Mortgage Cases

According to Reuters -- Deutsche Bank said on Thursday that it had reached a settlement with the U.S. Department of Justice, relating to the banks issuance and underwriting of residential mortgage-backed securities (RMBS) and related activities between 2005 and 2007. Under the terms of the settlement agreement, Deutsche Bank agreed to pay a civil monetary penalty of $3.1 billion and provide $4.1 billion in consumer relief. This is not the final legal agreement. The bank cautioned that there is "no assurance" the two sides will agree on the final documents.

The deal removes a major legal hurdle for the bank. Deutsche Bank has been among several financial institutions investigated for selling low quality residential mortgages. The Department of Justice sued Barclays on Thursday over similar claims. U.S. Investment bank Goldman Sachs agreed in April to pay more than $5 billion to settle similar allegations. Other major banks implicated in the crisis include the Royal Bank of Scotland and Credit Suisse who is in late-stage negotiations and has resisted a demand by the agency that it pay between $5 billion and $7 billion over its sale of mortgage securities, sources have said. To get more in depth information on the Deutsche Bank settlement with the Department of Justice click on the pictures below to read the articles.