FRANKFURT, Germany — Nine years after the collapse of the U.S. housing market, two European banks have agreed to offer American homeowners and borrowers billions of dollars' worth of help under a settlement related to the sale of risky securities that helped spark the 2008 crisis.
Deutsche Bank and Credit Suisse said Friday that they agreed to the tentative settlements with the U.S. Justice Department over their dealings in mortgage-backed bonds.
Deutsche Bank, Germany's biggest, agreed to pay $7.2 billion — $3.1 billion in fines and $4.1 billion in consumer relief. That relief could include easier terms on loan repayments terms for homeowners and borrowers.
Neither Deutsche nor Credit Suisse, which agreed to a similar settlement under which it would pay $5.3 billion, including $2.8 billion in consumer relief, provided details on what the consumer compensation would entail.
Previous settlements related to mortgage-backed securities have meant banks reduced loan amounts and interest for some borrowers and donated money to community development groups, all under the supervision of appointed monitors who track compliance.
Housing advocates, however, have complained that banks have claimed credit toward the settlement amounts for activities they would have undertaken anyway.
Read Saturday's Arkansas Democrat-Gazette for full details.