Deutsche Bank, Credit Suisse settle US probes as Barclays sued

ZURICH: Deutsche Bank AG and Credit Suisse Group AG agreed to pay a combined US$12.5bil to resolve US investigations into sales of the toxic debt that fuelled the financial crisis, putting behind them a major dispute that had weighed on their shares and raised questions about their turnaround plans.

Deutsche Bank would pay US$7.2bil and Credit Suisse agreed to a US$5.3bil deal, the banks said in separate statements yesterday. Their announcements came hours after Barclays Plc, which is being probed in a related case, was sued for fraud on Thursday by the Justice Department after it balked at paying the amount the government sought in negotiations.