![]() ![]() On Thursday it sued the British bank Barclays, accusing it of massive fraud in the sale of mortgage-backed securities and contributing to the global financial crisis of 2008. The US DoJ is not finished pursuing banks for their malfeasance during the run-up to the 2007-8 global financial crisis. ![]() The three biggest US banks - JPMorgan Chase, Bank of America and Citigroup - have likewise each reached settlements with the US government totaling billions of dollars recently. Other major banks implicated in the crisis include the Royal Bank of Scotland and Credit Suisse.Ĭredit Suisse on Friday reached an agreement-in-principle with US authorities to pay $5.28 billion to settle disputes over the sale of mortgage-backed securities, the Swiss-based global bank said in a statement. US investment bank Goldman Sachs agreed in April to pay more than $5 billion to settle similar allegations. The agreement should resolve a years-long US investigation into the German lender's dealings in residential mortgage-backed securities (RMBS) and other activities during 2005 to 2007 - removing a major legal hurdle for the bank. This is not the final legal agreement, however, and it is not yet assured that the DoJ and the bank will agree on the final documentation, the bank cautioned on Friday.ĭB has been among several financial institutions investigated for selling low-quality residential mortgages. No major figures have suffered criminal conviction. The department has faced criticism for its perceived failure to hold senior executives to account following the financial crisis. It is the DoJ's first accord with a European bank over misconduct that contributed to the US housing-market collapse. ![]() The DoJ had earlier sought a settlement about twice as big. The bank's shares rose 4 percent in early trading on Friday on news of the settlement. Deutsche Bank (DB) has reached an agreement-in-principle with the US Justice Department (DoJ) to pay $3.1 billion (2.9 billion euros) in civil penalties and provide $4.1 billion relief to consumers. ![]()
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