NEW YORK (TheStreet) -- Deutsche Bank (DB) shares are down -1.8% to $34.82 on Tuesday following reports that the bank has begun settlement negotiations with U.S. regulators over allegations of money laundering violations.
The investigation stems from the banks alleged dealings with Iran and other countries the U.S. has blacklisted. Regulators accuse the German bank of laundering funds from companies in Iran and Sudan through its U.S. business operations.
Must Read: Warren Buffett's 25 Favorite Stocks
Fellow German Bank Commerzbank (CRZBY) is expected to pay at least a $500 million fine for the same charges according to a New York Times article today. That pending fine is expected to the the precursor to a Deutsche Bank settlement later this summer.
This news comes following last week's record settlement by French Bank BNP Paribas (BNPQY) for $8.9 billion due to similar allegations.
TheStreet Ratings team rates DEUTSCHE BANK AG as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEUTSCHE BANK AG (DB) a SELL. This is driven by a few notable 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 generally disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity and weak operating cash flow."