Was Deutsche Bank's relief rally justified? DOJ settlement amount holds key

Despite the ongoing crisis at the helm of Deutsche Bank, the stock managed to rebond vigorously and end  +14% last Friday, following reports, via AFP, announcing that based on "sources", the pending DOJ settlement would be drastically reduced from over $14 billion to just under $6 billion.

However, over the weekend, Frankfurter Allegemeine Zeitung reported, cited via Reuters, that "Deutsche Bank executives are heading to the United States in the coming days to negotiate a settlement over a fine of up to $14 billion for misselling mortgage-backed securities."

Reuters adds: "The FAZ did not cite any sources for its report." Should the market start to price out the unfounded AFP news from last Friday, it may result on renewed risk aversion flows as the realization that DB is still facing the prospects of a fine as hefty as initially thought settles in.