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Deutsche Bank and other European lenders fell on Tuesday following a report that the U.S. Department of Justice may delay the settlement of fines for mis-selling mortgage backed securities until after the Presidential election next month.

DoJ hopes of finalizing an omnibus settlement against Barclays (BCS) - Get Barclays Plc Report , Credit Suisse (CS) - Get Credit Suisse Group AG Report and Deutsche Bank (DB) - Get Deutsche Bank AG Report before the Presidential election have been lowered, Sky News reported, citing a senior banker. It is now becoming more likely that an announcement from the DoJ could slip beyond November.

In Frankfurt, Deutsche Bank was down 2.2% at €13.01 ($14.15). Credit Suisse was recently down 0.7% in Zurich at Sfr13.76 ($13.84), while in London Barclays was down 0.4%  in London at 182.85 pence ($2.23). 

An omnibus agreement with the three big banks may not be concluded until closer to the arrival of the new U.S. administration in January, Sky reported.

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It added that the delay would likely also deal a blow to Royal Bank of Scotland (RBS) - Get Royal Bank of Scotland Group Plc Report . The Edinburgh bank, which is majority owned by the U.K. government, had hoped its separate deal with the DoJ could be concluded before the end of the year.  RBS was down 2% at 184.20 pence.

None of the banks is likely to welcome further uncertainty, especially not Deutsche Bank, which has been the focus of market concerns since its September announcement that the DoJ's opening position was a $14 billion fine.

Nevertheless, there was never any public commitment to early decisions, however much Deutsche might have hoped to have an agreement in place ahead of its third-quarter earnings announcement on Thursday.