US seeks $14bn Deutsche Bank settlement

Deutsche Bank said it "has no intention to settle these potential civil claims anywhere near the figure cited."

The claim against Deutsche, which is likely to be negotiated for several months, far outstrips investor expectations, BBC News reports.

The bank's shares fell more than 1.6% in after-hours trading.

"The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts," Deutsche Bank said.

The sale of residential mortgage-backed securities played a significant role in the 2008 financial crisis.

Banks in the US have been subject to a number of investigations over allegations of giving mortgages to unqualified borrowers, then repackaging those loans as safe investments and selling the risk on to others.

A number of banks have settled with US authorities over mis-selling of mortgage-backed securities.

Morgan Stanley, Credit Suisse, HSBC, UBS have all paid out. Goldman Sachssettled for $5.1bn in January this year.