Market Insider

Deutsche Bank shares spike after report it is near DOJ settlement

Deutsche Bank and German regulation
Deutsche Bank and German regulation

Shares of Deutsche Bank jumped 15 percent Friday in New York after AFP, citing a source, reported that the bank may be near a $5.4 billion settlement with the U.S. Department of Justice. CNBC has not independently confirmed the report, but if accurate, that settlement would be well below the reported $14 billion opening bid by the DOJ in its talks with Deutsche.

Deutsche Bank is not publicly commenting on the supposed $5.4-billion figure. The DOJ did not reply to a CNBC request for comment. The German Finance Ministry declined to comment on media reports of a settlement.

Although there are reasons to be skeptical about the number stated in the report, Deutsche Bank shares were near session highs in afternoon trade.

With gains of more than 15 percent, Deutsche Bank shares were tracking for their best day since 2011 and on pace for weekly gains of more than 3 percent.

Deutsche Bank shares 3-month performance (New York trade)

Germany's biggest bank came under fresh scrutiny two weeks ago when it surfaced that the Department of Justice was demanding $14 billion to settle the bank's mortgage lending activities during the housing bubble, before the recession. Its market value was below $17 billion as of Thursday's close.

Shares of Deutsche Bank plunged Thursday on reports that a handful of its big hedge fund clients were limiting their exposure to Deutsche Bank, though the bank has characterized those media reports as "unjustified concerns."

As of June 30, Deutsche Bank said it had 5.5 billion euros ($6.17 billion) in litigation reserves, according to a presentation the bank gave during quarterly earnings.

— CNBC's Gina Francolla contributed to this report.