Deal relates to sale of mortgage-backed securities in run-up to financial crisisBarclays 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 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. Barclays to suspend online services while it splits bank Read moreTwo former Barclays executives have also reached a settlement. At the time Barclays said it would not settle and the justice department launched legal proceedings. Barclays said the settlement resolved “all actual and potential civil claims” by the justice department relating to securitisation, underwriting and sale of mortgage-backed securities in the period 2005-2007.

Source: The Guardian March 29, 2018 15:38 UTC