Deutsche Bank is getting walloped

Deutsche Bank shares are crashing after The Wall Street Journal reported that it has been asked to pay $14 billion to resolve a probe into mortgage securities.

Deutsche Bank shares slumped in after-hours trading in New York, falling more than 7%.

The report, from Aruna Viswanatha, Jenny Strasburg and Eyk Henning, said the US Justice Department proposed a "preliminary" figure for Deutsche Bank to settle a series of mortgage-securities probes.

The number is far beyond Deutsche Bank's own expectations, according to The Wall Street Journal.

Deutsche Bank said in its second quarter earnings that it had 5.5 billion euros ($6.2 billion) in litigation reserves set aside.

Deutsche Bank said it expects to settle the matter at a much lower amount.

The bank said in a statement:

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