Credit Suisse to pay $5.3B in U.S. mortgage deal

• European lenders will be hoping for a fresh start in 2017 after settling claims relating to the sale of toxic MBSs before the financial crisis.
• The DOJ has reached a $7.2B provisional deal with Deutsche Bank (NYSE:DB) and a $5.3B agreement in principle with Credit Suisse (NYSE:CS).
• Barclays (NYSE:BCS) is also feeling the heat from U.S. federal prosecutors after the British bank balked at paying the amount the government sought in negotiations.
• Premarket: DB +2.6%; CS -1%; BCS -1%