Barclays to pay $2 billion to US to settle mortgage suit
NEW YORK (AP) — British bank Barclays became the latest big bank to reach a multi-billion dollar settlement with U.S. authorities over its role in the subprime mortgage bubble and subsequent financial crisis. But in a rare and notable move, U.S. authorities went further to fine two individual bankers as part of their alleged role in the subprime mortgage crisis.
Barclays agreed to pay $2 billion in civil penalties on Thursday to settle charges that it sold fraudulent mortgage-backed securities to investors between 2005 and 2007, and that it misled investors on the quality of those loans that it sold to the public.