Shares of Deutsche Bank jumped 14 percent Friday in New York after AFP, citing a source, reported that the bank may be near a USD 5.4 billion settlement with the U.S. Department of Justice.
CNBC has not independently confirmed the report, but if accurate, that settlement would be well below the reported USD 14 billion opening bid by the DOJ in its talks with Deutsche.
Deutsche Bank declined to comment to Reuters on the report.
With gains of more than 12.5 percent, Deutsche Bank shares were tracking for their best day since 2011 and on pace for weekly gains of more than 1 percent.
Germany’s biggest bank fell under fresh scrutiny two weeks ago when it surfaced that theDepartment of Justice was demanding USD 14 billion to settle the bank’s mortgage lending activities during the housing bubble, before the recession. Its market value was below USD 17 billion as of Thursday’s close.
Shares of Deutsche Bank plunged Thursday on reports that a handful of its big hedge fund clients were limiting their exposure to Deutsche Bank, though the bank has characterized those media reports as “unjustified concerns.”
As of June 30, Deutsche Bank said it had 5.5 billion euros (USD 6.17 billion) in litigation reserves, according to a presentation the bank gave during quarterly earnings.