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Deutsche Bank shares swing wildly amid stability concerns

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BERLIN — Shares in Deutsche Bank swung wildly on Friday, touching a record low before roaring back to life, amid speculation about the stability of Germany's biggest bank and the European financial system.

Having initially fallen 8 percent, the shares rallied to close more than 6 percent higher on hopes the bank will be able to negotiate down the massive cost of settling a US investigation.

The US government had been asking for $14 billion to settle claims over the bank's sales of mortgage securities, complex investments that were one of the causes of the global financial crisis in 2008. The US government says Deutsche Bank was among several companies that misled investors about the quality of these investments.

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The rally was prompted by an unsourced report by Agence France Press that the US government had agreed to a settlement worth $5.4 billion. Deutsche Bank declined to comment on the report.

With or without a deal with US authorities this weekend, Deutsche Bank faces questions about its operations that will keep investors on edge.