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Deutsche Bank still in talks with DOJ over MBS


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Deutsche Bank still in talks with DOJ over MBS

Deutsche Bank AG's negotiations with the U.S. Departmentof Justice over allegations that it missold MBS are progressing, but have notyet reached a stage where a proposed settlement has been presented for approvalto senior figures at either party, TheWall Street Journal reported, citing "people familiar with the matter."

The bank was recently reported tobe nearing a $5.4billion settlement with the DOJ, which is seeking for the allegedmisselling.

CEO John Cryan intends to fly toWashington, D.C., in the week of Oct. 3 for meetings at the IMF and the WorldBank, stoking speculation that he could meet with DOJ officials in person,according to the Oct. 2 report.

Lawyers at the DOJ have alsoraised the possibility of settling with other European banks and announcing all settlements atthe same time, but insiders told the Journalthat such a move is uncertain.

Separately, the bank is set toreach a deal with labor representatives on some 1,000 layoffs in Germany aspart of cost-cutting initiatives announced in 2015, "people with knowledgeof the matter" told Bloomberg News. The job cuts would mostly affect back-officeroles, including those in IT.

Deutsche Bank earlier in 2016concluded the first round of negotiations with its works council for approximately 3,000full-time employees, including some 2,500 roles at the lender's private andcommercial clients division.