U.S. asks Bank to pay $14 billion on toxic mortgages read more at here www.spinonews.com/index.php/item/861-u-s-asks-bank-to-pay-14-billion-on-toxic-mortgages

A $14 billion fine or even half that sum would still rank among one of the largest paid by banks to U.S. authorities in recent years. In 2013 JPMorgan Chase & Co agreed to pay $13 billion to settle allegations by the U.S. authorities that it overstated the quality of mortgages it was selling to investors in the run-up to the 2008-2009 financial crisis.

 In 2014 Bank of America Corp agreed to pay $16.7 billion in penalties to settle similar charges.

The U.S. Department of Justice is asking Deutsche Bank to pay $14 billion to settle an investigation into its selling of mortgage-backed securities, Germany's flagship lender.

The bank's US-listed shares fell 8 percent in after-hours trading. But the news of the massive U.S. demand hit the bank's stock, which dropped nearly 7% in after-hours trading in the U.S. Its shares were already down 50% in the past year.

Deutsche Bank has set aside about $6.2 billion to deal with the various legal challenges it's facing

Deutsche Bank has not said what it has set aside in a settlement over the sale and packaging of resident mortgage-backed securities before 2008. Its overall legal provisions stood at 5.5 billion euros at the end of the second quarter.

The U.S. Justice Department wants the bank to pay $14 billion over allegations it packaged up toxic mortgages between 2005 and 2007.

But Germany's biggest lender says the huge sum demanded by the U.S. government is just the opening move in what's likely to be a lengthy back-and-forth.

Deutsche Bank said it expects the wrangling to result in an outcome similar to those of peer banks which have settled at materially lower amounts.

Deutsche Bank, which was dubbed the world's riskiest bank by the International Monetary Fund in June, announced a 98% plunge in profit for the second quarter of this year.