The amount will still need final approval and is much less than what regulators had asked the bank to pay - $14 billion.
The fine raised some concerns that a bank failure could be a threat to the global financial system.
The German bank isn’t the only one facing the scorn of U.S. regulators. Credit Suisse announced a similar deal was in the works. The bank noted it agreed to a $5.28 billion deal with U.S. authorities. $2.48 billion will be paid to the authorities in the U.S. while the remaining $2.8 billion will be compensation and given to consumers during the next five years.
Barclays is currently under investigation and being sued. According to the US. Department of Justice, Barclays constantly misrepresented the aspects of loans backing securities that were sold to investors all around the world, which led to billions of dollars in losses.
A big reason for the investigation is that the sale of residential mortgage-backed securities helped lead to the 2008 financial crisis.
There were several U.S. banks that were investigated on the practices of providing mortgages to people who didn’t qualify and repackaged those loans as safe investments and selling the risk to other. The investigations looked at loans made between 2005 and 2007.