The US Department of Justice is seeking 14 billion dollars from Deutsche Bank to settle an investigation of fraud cases involving the sale of mortgage-backed securities in the run-up to the 2008 financial crisis.

The bank confirmed the demand in a statement released late Thursday.

"Deutsche Bank AG confirms that it has commenced negotiations with the Department of Justice in the United States ('DoJ') with a view to seeking to settle civil claims that the DoJ may consider in connection with the bank's issuance and underwriting of residential mortgage-backed securities (RMBS) and related securitization activities between 2005 and 2007," the bank said.

The Wall Street Journal had first reported the US Justice Department demand.

Deutsche Bank spoke of "an opening position" of 14 billion dollars and said the Department of Justice has invited the bank to submit a counter-proposal as the next step.

Deutsche Bank said it "has no intent to settle these potential civil claims anywhere near the number cited."

"The negotiations are only just beginning," the statement added. "The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts"

In the lead-up to the 2008 US financial crisis that triggered a global recession, US banks and investment firms sold deceptive mortgage-backed securities.

The availability of easy loans for home purchases triggered a housing bubble that started collapsing in 2007.

The three biggest US banks - JPMorgan Chase, Bank of America and Citigroup - each reached settlements with the US government totalling billions of dollars.

Related stories

Latest news

Austria seeks to create jobs, but new EU immigrants need not apply

Austria plans to create 160,000 jobs in the next three years by subsidizing companies, but the project has raised concerns because it effectively excludes people who recently immigrated from other EU countries.

Juncker: Not good for W. Balkans that some in Washington want to water down EU

European Commission President Jean-Claude Juncker said on Tuesday it was not good for Western Balkan countries that some people in the new US administration gave the impression of being against the European Union because those countries needed the prospects of EU membership.

German state approves full-face veil ban

Legislation that bans face veils in select public spaces and situations was agreed by the government of the southeastern German state of Bavaria on Tuesday.

Indian restaurant Gaggan in Bangkok named Asia's best for third year

Bangkok's Indian eatery Gaggan on Tuesday was named the best restaurant in Asia for the third consecutive year by Asia's 50 Best Restaurants.

HGK: 16 Croatian companies to exhibit at IDEX defence exhibition

Sixteen Croatian companies will exhibit their products at the 13th IDEX 2017 defence exhibition in Abu Dhabi, to be held on February 19-23.

Trump and the nuclear codes: Carnival again takes aim at politicians

US President Donald Trump, Brexit, Turkish leader Recep Tayyip Erdogan, and Germany's right-wing AfD party: Floats unveiled Tuesday for this year's Carnival parades in Cologne and Mainz once again turn to political satire to entertain revellers.

Barcelona police open fire on stolen lorry laden with gas canisters

Security forces in Barcelona opened fire on a stolen lorry laden with gas canisters to bring a rampage through the city to an end, police in the Spanish city said on Tuesday.

Stuttgart to issue bans on high-polluting diesel vehicles from 2018

Most diesel vehicles will be banned from roads in the southern German city of Stuttgart during times of heavy pollution, a bid to clean up the city's air, the German state of Baden-Wuerttemberg decided Tuesday.

Slovenia welcomes construction of LNG terminal off Krk, but won't join for now

Slovenia is not planning for now to connect to the floating LNG terminal to be built off Omisalj on the northern Croatian Adriatic island of Krk, but welcomes any additional energy source, Slovenian media say.

German court rules against automatic refugee status for Syrians

Syrians fleeing the multi-sided civil war in their home country do not have an automatic right to refugee status under the Geneva Convention, a German court ruled Tuesday.

Business conference pushes for intensified privatisation in Croatia

As long as the state authorities pay high bills, this means that the government has not yet seriously delved into the privatisation of state-run companies, although their sale can alleviate the pressure on the state budget, a business conference in Zagreb heard on Tuesday.

HND condemns judge's verbal tirade against reporters

The Croatian Journalists' Association (HND) on Tuesday condemned a verbal tirade by Sibenik Municipal Court Judge Maja Supe against reporters in the courtroom, claiming that they were not educated to report on trials and that they had called her the "most corrupt judge in the country."

Mosque attended by Berlin attacker Amri closed, police confirm

The mosque in Berlin attended by Berlin truck attacker Anis Amri has been closed. The mosque is permanently closed, read a note in German and Turkish on the door of the prayer rooms which was seen on Tuesday.

German army to expand to almost 200,000 soldiers

Germany's Bundeswehr, plans to expand its number of professional soldier to 198,000 by 2024 because of increasing duties, the German Defence Ministry announced on Tuesday.

Fired Audi engineer says he was 'sacrificed' for emissions scandal

A fired Audi engineer was "sacrificed" amid the ongoing VW group diesel emissions scandal, his lawyer claimed in court on Tuesday as he contested his client's dismissal.