The Wall Street Journal, citing "people familiar with the matter," reported that the $14 billion fee would settle a series of high-profile mortgage-securities probes during the financial crisis.
Perhaps more important to investors is the fact that the $14 billion amount is notably higher than what other banks ended up paying in settlements. For instance, Citigroup Inc C paid $7 billion while Goldman Sachs Group Inc GS paid $5 billion to settle similar charges.
Following the report, Deutsche Bank's stock traded at levels it hasn't seen since the Brexit vote in late June when the stock bottomed at $12.48.
Deutsche Bank's German listed stock DBK was trading at 11.99 euro, down 8.79 percent as of 9 a.m. ET. The stock hit a 52-week low of 11.07 euro following the Brexit vote.
Deutsche Bank was quoted by the Wall Street Journal as saying in a statement that it has "no intent" of paying a fee that is "anywhere near the number cited."
Nevertheless, investors appear to be banking on the fact that whatever settlement the bank pays will be large as evidence by not only Deutsche Bank's stock decline but many of its European peers.
- Shares of Royal Bank of Scotland Group PLC RBS were trading lower by nearly 6 percent at $5.16.
- Shares of Credit Suisse Group AG (ADR) CS were lower by more than 5 percent at $12.99.
- Shares of Barclays PLC (ADR) BCS were trading lower by more than 3 percent at $8.99.
- Shares of UBS Group AG (USA) UBS were lower by more than 3 percent at $13.79.
- Shares of Lloyds Banking Group PLC (ADR) LYG were lower by nearly 1 percent at $3.03.
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