| FRANKFURT/NEW YORK
FRANKFURT/NEW YORK Dec 19 Deutsche
Bank could agree this week to a penalty with the U.S.
Department of Justice for allegedly misleading investors when
selling mortgage-backed securities, one person with direct
knowledge of the matter said on Monday.
"There is a good chance that the case will be off the table
before Christmas," the person said, adding that an announcement
could come as early as Wednesday.
In September, news that Germany's flagship lender faced a
penalty of up to $14 billion caused Deutsche's shares to plunge
and later prompted the bank to deny speculation that it needed a
bailout from Germany.
Any last-minute hitch in negotiations could delay an
announcement and the person cautioned that a deal was not yet
finalised. A spokesman for the Department of Justice declined to
Deutsche Bank, which used to be a major player in the U.S.
mortgage market, is set to pay far less than the $14 billion
penalty the U.S. authorities had initially asked for, the source
indicated. Deutsche Bank declined to comment.
($1 = 0.9586 euros)
(Writing by Arno Schuetze; Editing by Edward Taylor and John