Flurry of Settlements Over Toxic Mortgages May Save Banks Billions
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Deutsche Bank on Wall Street. Investors were relieved this week when the bank reached a $7.2 billion settlement with the Justice Department to end an investigation into the sale of toxic mortgage securities.CreditMark Kauzlarich/Bloomberg
European banks have rushed to cut deals with prosecutors over longstanding claims that they pushed toxic mortgage securities in the years before the financial crisis.
The payouts are steep: Deutsche Bank and Credit Suisse said that they would disgorge nearly $13 billion combined to settle with the United States Justice Department.
But with the clock ticking before President-elect Donald J. Trump takes over, there appears to be an eagerness in Washington to conclude cases before a new, potentially more sympathetic, administration begins. As a result, these banks may have benefited from paying billions less than once proposed…
Flurry of Settlements Over Toxic Mortgages May Save Banks Billions
