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LONDON, Sept 16 (Reuters) - European shares edged lower in early trading on Friday and headed for their second straight week of losses, with Deutsche Bank slumping after saying the U.S. government was asking it to pay a huge amount to settle the mortgages case.
Shares in Deutsche Bank fell 6.7 percent, the top decliner in the pan-Europen STOXX 600 index, after Germany's flagship lender said the U.S. Department of Justice was asking it to pay $14 billion to settle an investigation into its selling of mortgage-backed securities.
Royal Bank of Scotland and Credit Suisse fell 4.8 percent and 4.5 percent respectively, pushing the European banking index 1.5 percent lower.
The STOXX Europe 600 index fell 0.1 percent in early trading. The index is down 1.6 percent so far this week, the biggest weekly loss since mid-August, after falling 1.4 percent in the previous week. (Reporting by Atul Prakash, editing by Alistair Smout)