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Deutsche's hefty legal fees

October 24, 2014

Deutsche Bank has said it expects to pay close to 900 million euros in legal fees in the third quarter. The high price tag comes as Germany's largest lender fights charges of interest rate manipulation and other sins.

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Deutsche Bank headquarters in Frankfurt, Germany
Image: Reuters

The Frankfurt-based lender said Friday it expected 894 million euros ($1.1 billion) in litigation costs for the third quarter of 2014.

Much of the money will go toward settling the score with British and American regulators who accuse Deutsche Bank of manipulating the benchmark London Inter-Bank Interest Rate (Libor) and failing to properly disclose US mortgage-backed securities.

The bank has already spent 6.1 billion euros on fines and payments in the last two and a half years stemming from lawsuits over a range of alleged malfeasances.

But the bank has yet to resolve probes into its role in the misreporting and manipulation of benchmark interest rates and currency exchange markets. Regulators suspect Deutsche Bank colluded with several major international banks.

In a statement, the bank noted the litigation costs were largely not tax-deductible.

nz/cjc (Reuters, dpa)