BBC REPORT- Barclays pays $2bn to settle US fraud case

WASHINGTON- Barclays has agreed to pay $2bn (£1.4bn) to settle a lawsuit brought by the US government over the sale of mortgage-backed securities in the run-up to the financial crisis.

The US Department of Justice alleged that the bank had misled investors about the quality of loans backing the securities.

Two former Barclays executives also agreed to pay a total of $2m.

Barclays did not admit liability in the case.

US attorney for the eastern district of New York Richard Donoghue said, “The substantial penalty Barclays and its executives have agreed to pay is an important step in recognising the harm that was caused to the national economy and to investors in residential mortgage-backed securities.”

Article sourced from BBC.com

Photo Credit- BBC.com

 

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