LONDON, Sept 30 Shares in Deutsche Bank
surged about 6 percent just before the market closed
on Friday, lifting European stocks and the euro currency as
well, after a media report said an agreement with U.S.
authorities to slash huge fines over alleged misselling of
mortgage-backed securities was beiing discussed.
Traders cited a report by Agence France Presse that said
Deutsche Bank was near a $5.4 billion settlement with the U.S.
Department of Justice. News last week that the U.S. government
would levy a fine as high as $14 billion sent Deutsche's share
price plummeting to record lows.
Deutsche Bank declined to comment on the media report.
Earlier, U.S. investment bank JP Morgan said it also
estimated the U.S. fine could be reduced to $5.4 billion. But it
said Deutsche would not have enough current reserves to pay a
fine that was more than $4 billion and would have to raise more
capital if so.
(Reporting by Sudip Kar-Gupta. Editing by Mike Dolan)