Deutsche Bank shares suffer 8% hit

Deutsche Bank’s shares and its riskiest bonds dropped the most since the Brexit vote yesterday after the lender said the US Justice Department is seeking $14bn (€12.55bn) to settle a probe tied to mortgage-backed securities, more money than the bank is willing to pay.

“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited,” the company said in a statement yesterday.

“The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts.”