Deutsche Bank and Credit Suisse will pay €6,8bn ($7.2)bn and €5,1 ($5.3bn) respectively for their role in the 2008 subprime mortgage scandal.

Deutsche has achieved almost a 40% reduction from the original €12bn fine. The German lender will now pay just under €3bn as a fine and €4bn for consumer relief.

The German bank had allocated little over €5,5bn for litigation costs, and the news is likely to hurt both profit projections and overall valuation.

Similarly, Credit Suisse will pay €2,2...

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