Legal Risk

Report: Deutsche in U.S. Mortgage Probe

Deutsche Bank office Wall Street New York US Source picture-alliance - Pressefoto UL 12586304
Deutsche Bank faces more headwinds, this time in the United States.
  • Why it matters

    Why it matters

    Deutsche Bank is still struggling with past business activities and legal investigations, which have continued to weigh on the bank’s earnings.

  • Facts

    Facts

    • Germany’s largest bank is currently dealing with almost 8,000 legal cases.
    • Deutsche Bank has paid and set aside more than €12 billion in legal expenses since 2012.
    • Moody’s rating agency on Monday lowered a series of credit ratings linked to the bank.
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    Audio

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The U.S. Securities and Exchange Commission has launched an investigation into Deutsche Bank’s mortgage-backed securities positions around 2013 to determine whether the company delayed recording losses on the assets, news agency Bloomberg reported Monday, citing people familiar with the matter.

A Deutsche Bank spokeswoman said the bank was “cooperating with this investigation, which is looking into previously recognized losses on certain positions.” She declined further comment.

The revelation of another investigation, adding to nearly 8,000 legal cases that Germany’s largest bank is dealing with, came as credit rating agency Moody’s lowered the creditworthiness of Germany’s largest bank on Monday, citing risks to Deutsche Bank’s reorganization plan to structurally improve its profitability.

Deutsche Bank’s shares opened down 1.5 percent on Tuesday in Frankfurt, but quickly recovered in line with the German blue-chip DAX Index. The stock was up 0.9 percent by 10:47 a.m. at €15.30, compared with a 0.8-percent rise of the DAX Index.

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