German lender Deutsche Bank sounded an optimistic tone Friday, despite its shares suffering their worst day since late June following the news of a proposed $14 billion settlement by the U.S. Justice Department.
Jorg Eigendorf, head of communications and senior group director at Deutsche Bank, said that the bank had a "comfortable cushion" after the DOJ suggested that the bank pay $14 billion to settle a number of investigations related to mortgage securities. Reports state that investigations refer to the way it sold these securities before the financial crash of 2008.
Eigendorf said that it was a very high number but was confident that "we'll be able to negotiate this number down." Analysts have speculated that the bank might not have enough of a buffer even if the proposed settlement was halved.
"We didn't want this number to leak out ... We want these negotiations to be confidential" he told CNBC Friday.
He added that the bank was not concerned and there was "no reason to be worried right now." Shares slid nearly 8 percent in Friday's session after news of the suggested settlement.
Deutsche Bank said in a statement Friday that it "has no intent to settle these potential civil claims anywhere near the number cited." The bank emphasized that negotiations have just started and that it expects the outcome to be "similar to those of peer banks which have settled at materially lower amounts."
The company previously thought that a settlement between $2 billion and $3 billion would be fair, as it had already paid $1.9 billion in 2013 to resolve similar claims, the Wall Street Journal said. Other banks have recently paid smaller fines to settle similar violations, according to reports.