LONDON, Sept 21 European banks are likely to
reach final U.S. settlements over alleged mis-selling of
mortgage-backed securities well below the $14 billion claimed by
the Department of Justice against Deutsche Bank, Fitch Ratings
said on Wednesday.
The DoJ announced the unexpectedly high claim on Deutsche
Bank last week, far exceeding the 3 billion euro
($3.3 billion) toll the bank expected.
Fitch Ratings on Wednesday echoed comments by Deutsche
officials that they expect the final total paid by the German
lender to be far lower, seeing the DoJ's claim as an opening
All U.S. banks have already settled with the DoJ and in many
cases final settlements were far below initial reports, Fitch
Deutsche Bank is the first European lender whose potential
settlement with the DoJ has been made public, sparking fears
that other banks could face much bigger totals than had been
RBS shares fell over 5 percent on Friday after the Deutsche
Barclays, Credit Suisse, HSBC,
Royal Bank of Scotland Group and UBS, are among
the banks waiting to reach settlements with the DoJ over claims
they mis-sold mortgage-backed securities in the run up to the
2008 financial crisis.
($1 = 0.8973 euros)
(Reporting by Lawrence White; Editing by Ruth Pitchford)