Deutsche and Credit Suisse in $12.5 B U.S. Settlement

Sarla Buch
23 Dec, 2016
New York City

Airbus signed a contract with Iran Air to deliver 100 jetliners. Air France-KLM agreed to sell 11.3% stake in Amadeus IT. U.S regulator settled with Credit Suisse and Deutsche Bank for selling faulty mortgage securities for $5.7 billion and $7.2 billion respectively.

[R]4:00 PM Frankfurt – Airbus signed a contract with Iran Air to deliver 100 jetliners. Air France-KLM agreed to sell 11.3% stake in Amadeus IT. U.S regulator settled with Credit Suisse and Deutsche Bank for selling faulty mortgage securities for $5.7 billion and $7.2 billion respectively. Delta Lloyd agreed to be acquired by NN Group for €2.5 billion.[/R]

In London trading, FTSE 100 index rose 4.49 to 7,068.17 and in Frankfurt the DAX index fell 21.90 to 11,432.83.

In Paris, CAC 40 index edged up 2.77 to 4,837.40.

For the week, FTSE 100 index gained 0.8%, the DAX index rose 0.3% and the CAC 40 index edged up 0.1%.

Airbus Group SE fell 0.3% to €62.53 after France-based aerospace and defense products maker and Iran Air signed a contract for 100 jetliners, building on an initial commitment signed in January 2016 in Paris.

Airbus said deliveries will begin in early 2017.

“Iran Air considers an important step towards strong international presence in civil aviation. This success signals to the world that the commercial goals of Iran and its counterparts are better achieved,” chairman and chief executive of Iran Air, Farhad Parvaresh said.

Air France-KLM rose 0.2% to €5.41 after France-based airline group agreed to sell 4.95 million shares worth about €201 million of Amadeus IT Group, S.A, representing 1.13% of the online reservation system operator.

Credit Suisse Group AG slipped 0.9% to €15.20 after Switzerland-based financial services provider reached a settlement with the U.S. regulators to pay $5.7 billion for selling mortgage securities with improper disclosures during the financial crisis.

The bank agreed to pay penalty of $2.48 billion to the U.S. Justice Department, in addition to consumer relief payments of about $2.8 billion.

Deutsche Bank AG gained 0.8% to €17.88 after Germany-based investment bank agreed to pay $7.2 billion to settle an investigation by the U.S. Department of Justice for selling mortgage securities with improper disclosures.

The settlement includes $3.1 billion in penalty and a pledge to pay $4.1 billion however, terms are still under negotiation between the bank and the government.

Delta Lloyd NV slid 0.4% to €5.31 after the Netherlands-based financial services provider agreed to be acquired by the larger domestic insurer NN Group for about €2.5 billion $2.6 billion.

NN Group NV stock jumped 3.8% to €32.76.

The deal is expected to close in the second-quarter of 2017.