Deutsche Bank share price dips on reports mega $14bn fine settlement has been delayed
Deutsche Bank's shares dropped again today, as investors digest reports that the bank's settlement of a potential mega fine has been delayed.
The German lender's share price is currently down 2.3 per cent at €13.00, having been on a rollercoaster ride ever since it was announced the US Department of Justice (DoJ) could hit it with a fine for as much as $14bn (£11.5bn) for mis-selling mortgage-backed securities.
It was previously reported the DoJ was keen to reach a settlement with Deutsche Bank, along with a fine for similar mis-selling for Credit Suisse and Barclays, before the US presidential elections at the start of November.
However, Sky News revealed, long after the markets closed yesterday, the fines now might not be settled until closer to next January – around the time the new president will be sworn in.
Read more: Brexit more benefit to US than Europe, says Deutsche's chief economist
Deutsche Bank's shares plunged when news of the possible size of the fine initially emerged last month, and dropped further still after reports from the German media suggested Chancellor Angela Merkel was unwilling to extend state assistance to the embattled lender. At one point, shares dipped below the €10 mark.
However, they have since recovered and were trading at €13.24 last Friday, comfortably above the €13.10 they closed at the night before the penalty news broke and rattled the markets.
Deutsche Bank is due to reveal its third quarter results on Thursday. Many investors will likely be on the look out for hints of how penalty negotiations are going, while analysts have predicted a reported net loss of €610m (£542.6m).
Earlier this year, the lender reported €6.8bn of net losses for 2015, its first full year loss since 2008.