Europe

Deutsche Bank to pay $7.2 billion in bond settlement

Deutsche Bank says it has agreed on a $7.2 billion settlement with the U.S. Justice Department to end civil claims over its dealings in mortgage-backed securities.

The fine is around half the amount Deutsche Bank had warned it might have to pay earlier this year — a possibility that weighed heavily on the share price of Germany's largest bank.

Deutsche Bank said the deal is not yet final.

The settlement, which isn't final, would address the bank's issuance of bonds backed by home mortgages in 2005-2007.

Such bonds helped start a global financial crisis when the mortgages went into default and the bonds went sour.

Credit Suisse also said Friday it had agreed on a $5.3 billion mortgage-bond settlement.