The daily business briefing: December 23, 2016
Deutsche Bank and Credit Suisse settle dodgy-mortgage securities case, Ikea settles suit over deadly furniture accidents, and more
Deutsche Bank, Credit Suisse settle toxic mortgage cases
Germany's Deutsche Bank on Friday agreed to pay $7.2 billion to settle a U.S. Justice Department lawsuit over riskier-than-advertised mortgage-backed securities that played a large role in the 2007-08 global financial meltdown. The settlement, which still needs final approval, includes $3.1 billion in fines and $4.1 billion in relief to consumers. The amount marked a relief for Deutsche Bank, which had earlier said it might have to pay up to $14 billion to settle the civil charges. Also on Friday, Credit Suisse agreed to pay $5.3 billion in a similar settlement, and the Justice Department filed suit against Britain's Barclays Bank for allegedly misrepresenting the value of the loans it sold investors.
Ikea to pay $50 million in deadly toppled furniture case
Ikea confirmed Thursday that it had reached a tentative settlement with relatives of three children, all around age 2, who were crushed to death by chests or dressers from the Swedish furniture company's Malm line. The families of the American children — Curren Collas, Camden Ellis, and Ted McGee — said Ikea would pay $50 million to settle their claim that the furniture's design was flawed, making it "inherently unstable and easily tipped over." They also accused the company of refusing to meet voluntary safety standards regarding furniture stability.
Judge: VW agrees to pay diesel owners 'substantial compensation'
A federal judge said Thursday that Volkswagen had agreed to provide "substantial compensation" to the owners of about 80,000 polluting 3.0-liter vehicles affected by its diesel emissions cheating scandal. U.S. District Judge Charles Breyer didn't reveal how much compensation the owners would receive. The money will not be part of the $1 billion settlement VW reached with regulators earlier this week. That agreement calls for the German automaker to buy back about 20,000 of the vehicles and pay $225 million into an environmental trust fund to offset their excess emissions.
Stocks settle down in light pre-Christmas trading
European stocks edged higher on Friday ahead of the Christmas break. Markets got a lift from bank stocks, which rose after Deutsche Bank and Credit Suisse settled with U.S. regulators over toxic mortgage-backed securities that contributed to the 2008 financial crisis, with payments that were not as high as some feared. Asian stocks edged lower. In the U.S., the post-election rally that pushed the Dow Jones Industrial Average close to unprecedented heights near 20,000, stalled as trading slowed before Christmas weekend.
Nokia files more patent lawsuits against Apple
Finnish telecommunication giant Nokia on Thursday said that it had filed fresh patent lawsuits against Apple in the U.S., Asia, and Europe. Nokia is accusing the iPhone maker of violating 32 of its technology patents. Nokia shares dropped by nearly five percent on Thursday as analysts warned that a legal fight with Apple could hurt Nokia's profits by delaying royalty payments it needs.