$2 Billion to be Payed by Barclays to Settle U.S Fraud Case

“Barclays has agreed a $2bn (£1.4bn) settlement with the US justice department over the sale of mortgage-backed securities in the lead-up to the 2008 financial crisis. The settlement follows a three-year investigation into allegations that the bank caused billions of dollars of losses to investors by “engaging in a fraudulent scheme” to sell Residential Mortgage-Backed Securities (RMBS) between 2005 and 2007.

barclaysThe British bank was said to have misled investors about the quality of the mortgage loans backing those deals. The justice department alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, based on postal, wire and bank fraud as well as other misconduct.

Guardian News. 29 Mar. 2018, http://www.theguardian.com/business/2018/mar/29/
barclays-agrees-to-pay-2bn-to-settle-us-case-justice-department-mortgage-backed-s

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