Shares of Deutsche Bank erased losses to turn higher in Frankfurt after the U.S. Justice Department’s third highest-ranking official said banks can lower penalties by cooperating with authorities, according to a news report. Shares of Deutsche Bank have dropped more than 50% in 2016 and are down nearly 20% since the end of August after a report by The Wall Street Journal said U.S. officials proposed the bank pay $14 billion to settle civil claims related to dealings in mortgage-backed securities. Shares bounced from early losses to rise 0.8% in Frankfurt, while U.S.-listed shares were up 0.4%. Referring to banks that had already settled claims over mortgage dealings, Bill Baer, assistant attorney general for antitrust, said the institutions “paid a lot more” than would have been the case if they “had cooperated early on,” according to Bloomberg. “Whether to cooperate with the government in these matters is a choice companies need to make,” said Baer, in a speech in Chicago. Deutsche Bank has said it has no intention of paying $14 billion to settle the claims.
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