Shares of Deutsche Bank seesawed Wednesday after a report the embattled German lender was eyeing a lower settlement with U.S. authorities, adding to speculation on a possible outcome for its litigation issues.
German markets news publication Der Platow Brief said on Tuesday that Deutsche Bank was looking at a settlement of $4 billion to $5 billion by end of October with the U.S. Department of Justice (DOJ). The newsletter, which was reported by Reuters, also said that the bank was considering scrapping bonuses and raising fresh capital but it did not cite sources.
Shares of Germany's biggest bank by assets fluctuated between gains and losses on Wednesday, continuing a spate of market volatility experienced by the bank since reports last month that it could face a penalty of up to $14 billion from the DOJ for the misselling of mortgage-backed securities in the run up to the financial crisis of 2008. Shares of the bank closed up 2.77 percent on Wednesday.