European shares head for worst week in three months, Deutsche Bank slumps
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* STOXX Europe 600 index down 0.3 pct
* Index on track for worst week in three months
* Deutsche Bank leads banks lower
By Atul Prakash
LONDON, Sept 16 (Reuters) - European shares slipped on Friday and headed for their worst weekly performance in three months, with Deutsche Bank dragging financial services down after it said the U.S. government was seeking billions of dollars to settle a mortgages case.
Shares in Deutsche Bank fell 7.3 percent, the biggest decline in the pan-Europen STOXX 600 index, after Germany's flagship bank said the U.S. Department of Justice was asking it to pay $14 billion to settle an investigation of its sales of mortgage-backed securities .
The claim far outstrips the bank's and investors' expectations for such costs. It is not yet clear what the final payment will be, but if it were as high as $14 billion, it would severely strain Deutsche's fragile finances and probably further rock investor confidence.
"The surprise for the market is not because they have to pay, but due to the huge amount. It's an overhang, but these litigation costs are getting less important," said Ronny Claeys, senior strategist at KBC Asset Management in Brussels. Continuación...