NEW YORK (TheStreet) -- Shares of Deutsche Bank (DB) - Get Report are climbing by 6.97% to $12.29 on heavy trading volume Friday morning, based on speculation the company may be working out a lower fine with the DOJ, BloombegTV's Nejra Cehic reported on "Bloomberg Markets."
"It's worth noting that the shares today have reversed an earlier drop," Cehic continued. The stock hit fresh record lowers earlier, was down about 9%, but has since rebounded on the DOJ reports.
It was rumored earlier this month that the German banking giant would be fined $14 billion by the U.S. government, relating to an investigation into Deutsche Bank's mortgaged back securities, dating back before the financial crisis.
Deutsche Bank had commented after the reports surfaced, saying the bank has no intention of paying so large a sum.
Deutsche Bank stock had been declining earlier this week on reports that several hedge fund investors pulled billions of dollars out of the bank.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate DEUTSCHE BANK AG as a Sell with a ratings score of D. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: DB