The sum, which needs final approval, is far lower than the $14bn the US had asked the bank to pay in September, the BBC reports.
That looming fine had caused concerns that a failure of the bank could pose a risk to the global financial system.
Credit Suisse also announced a similar deal, while Barclays is now under investigation too.
The sale of residential mortgage-backed securities played a significant role in the 2008 financial crisis.
New York (AFP) - Four major banks have reached separate agreements to settle a US civil lawsuit over alleged foreign-exchange rigging in deals totaling nearly $1 billion, sources close to the situation said Wednesday.
While speculation that Qatar investors may come to Deutsche Bank's rescue came and went on Friday (especially after the market recalled that the alleged "white knight" may himself be nursing a massive margin loan from its first rescue of Deutsche Bank which included a $2 billion margin loan), the German lender quietly took advantage of
One week ago we demonstrated just how massive the second Chinese housing bubble when we showed the ridiculous move at the epicenter of China's latest scramble to reflate "animal spirits" in Shenzhen - one which has put even the recent Chinese stock market bubble to shame - as follows:
By Margaret ChadbournWASHINGTON (Reuters) - Foreclosed houses managed by Deutsche Bank in black and Latino neighborhoods had more broken windows, damaged roofs, overgrown lawns and trash in the yard than those it managed in nearby white neighborhoods, a nonprofit group said in a complaint to federal officials on Tuesday.The bank took much better care of foreclosed homes in white neighborhoods, and also marketed them more effectively, said the National Fair Housing Alliance, which filed its accusations with the U.S. Department of Housing and Urban Development.