Barclays Being Sued

Barclays is being sued for alleged mortgage securities fraud.

11:32 28 December 2016

The US Department of Justice is suing Barclays for misleading investors about the quality of loans backing securities in the run-up to the financial crisis. The news was followed by Deutsche Bank’s $7.2bn mortgage investigation settlement on Friday.

 

Barclays is one of the many European banks that are being investigated by the US authorities.

 

The US Department of Justice said: "From 2005 to 2007, Barclays personnel repeatedly misrepresented the characteristics of the loans backing securities they sold to investors throughout the world, who incurred billions of dollars in losses as a result of the fraudulent scheme."

 

Robert Capers, the chief prosecutor in the Eastern District of New York, said that investors included "credit unions, pension plans, charitable and religious organisations, university endowments, and financial institutions, among others"

 

Barclays have rejected all claims, saying they were “disconnected from the facts.”

 

Barclays said: "We have an obligation to our shareholders, customers, clients, and employees to defend ourselves against unreasonable allegations and demands.

 

"Barclays will vigorously defend the complaint and seek its dismissal at the earliest opportunity."