FTSE Moves: Deutsche Bank's $14bn US settlement weighs on financial stocks

Banking stocks dragged the Footsie lower in afternoon trading after US authorities asked Deutsche Bank to pay $14bn (£10.6bn) to settle its mortgage-backed securities probe into the lender. The German lender confirmed that the Department of Justice (DoJ) has asked it to pay the sum, but added it "has no intention to settle these potential civil claims anywhere near the figure cited".

The DoJ is investigating Deutsche Bank's role in selling mortgage-backed securities between 2005 and 2007. The sale of these types of securities played a significant role in the 2008 financial crisis.

The FTSE 100 Index fell 22.7 points to 6707.6, led by banks as traders fear US regulators will turn their attention to UK banks.

Banking stocks across Europe fell at the size of the charge, which is three times the amount analysts had forecast.

Royal Bank of Scotland was the biggest faller in the top flight, down more than 5%, or 10.2p to 184p, as it awaits a settlement with the DoJ on its sale of mortgage-backed securities in the run up to the global financial crisis.

Barclays was down 5p to 164.6p, Standard Chartered fell 17.6p to 606.6p and HSBC was 4.5p lower at 567.5p.

Spreadex financial analyst Connor Campbell said the "whopping" Deutsche Bank charge was "haunting the financial sector as a whole".

In afternoon trading the biggest risers in the FTSE 100 Index were Morrisons (+6.4p to 214.5p), Burberry (+28p to 1289p), TUI (+22p to 1049p), AstraZeneca (+84p to 5078p) and Provident Financial (+40p to 2950p).

The biggest fallers in the FTSE 100 Index were Royal Bank of Scotland (-10.2p to 184p), Barclays (-5p to 164.6p), Standard Chartered (-17.6p to 606.6p), ITV (-4.8p to 193.5p) and Fresnillo (-33p to 1613p).

In afternoon trading the biggest risers in the FTSE 250 Index were Spire Healthcare (+40.1p to 401p), Euromoney (+69p to 1172p), Galliford Try (+65p to 1276p), Evraz (+6.2p to 137.2p) and SVG Capital (+29.5p to 680p).

The biggest fallers in the FTSE 250 Index were Acacia Mining (-43.5p to 456.5p), Centamin (-4p to 137.8p), Amec Foster Wheeler (-10p to 537p), Ashmore Group (-6.4p to 346p) and Polymetal International (-17.5p to 988.5p).