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Credit Suisse, Deutsche Bank to Pay Billions to Settle Subprime Lending Charges

Credit Suisse ( CS ) and Deutsche Bank ( DB ) have reached an agreement with the U.S. Justice Department according to which the two banks have to pay a financial penalty due to irregularities related to sale of subprime lending in -……5 and -……7.

In order to close the dispute, Credit Suisse has to pay $5.' billion and Deutsche Bank has to pay $7.- billion.

In addition, the Swiss bank will have to pay $-.48 billion in financial penalties and it has been held responsible for the damages to consumers.

Credit Suisse must pay $-.8 billion in compensation for these financial damages over a period of five years.

On Dec. --, Credit Suisse Group AG, the Swiss international financial services holding company that runs the Credit Suisse Bank, closed at $-4.85, down 8 cents from the previous trading day, with -,9…4,8'8 shares traded on the NYSE.

The stock is more volatile than the overall market with a beta of -.'4 and lost '-.5'% year to date.

Credit Suisse Group was outperformed by the S&P 5…… with 4-.-8%.

The 5--week range is between $-….…- and $--.--. Credit Suisse has a market capitalization of $'-.59 billion and a volume of -.…9 billion shares outstanding, of which approximately 9'.8% can be traded on the NYSE.

Credit Suisse Group had $'78.-5 billion in cash on hand and $-8-.67 billion in total debt, as of the most recent quarter. The book value per share is $-….85.

Among the top institutional holders of Credit Suisse Group, Brandes Investment Partners L.P. and Earnest Partners LLC stand out with 6,558,94- shares and 6,-59,96' shares as of Sept. '….

On Dec. --, Deutsche Bank closed at $-8.6', up 9 cents from the previous trading day, with 8,6…7,4-8 shares traded on the NYSE.

The stock lost --.8'% year to date. Deutsche Bank AG was outperformed by the S&P 5…… with ''.58%.

The 5--week range is between $--.-9 and $-6.'7. Deutsche Bank has a market capitalization of $-6.-4 billion and a volume of -.'8 billion shares outstanding, of which approximately 9-% can be traded on the NYSE.

Deutsche Bank had $976.7- billion in cash on hand and $8-4.- billion in total debt, as of the most recent quarter. The book value per share is $5….88.

Bank of America ( BAC ) and Goldman Sachs ( GS ) are among the top institutional stockholders of Deutsche Bank.

Disclosure: I have no positions in any stock mentioned in this article.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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