Home » Money

$2000000000: Barclays fine for sale of United States toxic mortgages

30 March, 2018, 08:05 | Author: Melinda Barton
  • Barclays bank

"We are proud to have partnered with the U.S. Department of Justice and the U.S Attorney's Office for the Eastern District of NY on this matter".

After three years of research, department that led Loretta Lynch determined that Barclays caused billions in losses with a network that allowed it to offer active investors low-quality debt, which ended up going to pique when It collapsed housing market.

The department's complaint involved 36 residential mortgage-backed security deals, which made $31bn of subprime and Alt-A loans tradable on the market.

Barclays recently approached the Justice Department to restart negotiations, according to two people familiar with the matter, who were not authorized to speak publicly.

"The substantial penalty Barclays and its executives have agreed to pay is an important step in recognizing the harm that was caused to the national economy and to investors in RMBS", Donoghue said in a statement.

The $2 billion penalty is less than the settlements reached by Goldman Sachs, JPMorgan Chase and other major banks over their pre-crisis mortgage deals. It is one of the largest to be levelled against a British bank, although smaller than last year's $5.5 billion penalty for Royal Bank of Scotland.


As a result of Barclay's alleged actions, investors lost billions of dollars, the Justice Department said. The Justice Department claimed that borrowers whose loans backed subprime mortgage deals were significantly less creditworthy than Barclays represented. In addition, the mortgaged properties were worth much less than what Barclays had presented to investors.

The bank last month reported a £1.9bn loss for 2017 after United States tax reforms and an accounting write-down from the sale of its Africa businesses resulted in big one-off charges.

In a statement Thursday, Barclays chief executive Jes Staley said he was pleased to reach a "fair and proportionate settlement, " adding, "It has been a priority for this management team from the start to resolve these historic issues in a timely and appropriate manner wherever possible".

The two former Barclays executives named as defendants in the suit are Paul Menefee, who was the lender's head banker on its subprime RMBS securitisations, and John Carroll, who served as head trader for subprime loan acquisitions. It also racked up £2.5bn of losses from the sale of Barclays Africa.

With the settlement now in the rear-view mirror, Barclays said it plans to pay a 6.5 pence dividend for 2018.

Recommended:

  • Buhari's decision on tenure elongation best for APC - party chieftain

    Buhari's decision on tenure elongation best for APC - party chieftain

    APC insisted that the suit raised serious constitutional issues, saying "for the interest of fair hearing, we are still within time to file our processes".
    Iceland announces its leaders won't attend World Cup in Russian Federation

    Iceland announces its leaders won't attend World Cup in Russian Federation

    Iceland are in Group D alongside Nigeria , Argentina and Croatia in the upcoming football World Cup in Russian Federation . A few hours later, Ms Bishop tweeted: "That is wrong - the government is not considering a boycott of the World Cup".
    Kansas beats Duke for last spot in Final Four

    Kansas beats Duke for last spot in Final Four

    Lagerald Vick added 14 points and Svi Mykhailiuk 11, including a big three that tied the game at 72 near the end of regulation. He scored 28 against Seton Hall, 17 against Clemson and all 13 of the Jayhawks' overtime points against the Blue Devils .
  • Social media explodes as Giancarlo Stanton makes Yankees debut with a bang

    Social media explodes as Giancarlo Stanton makes Yankees debut with a bang

    On paper, the Yankees are already being considered as one of the most powerful offensive clubs in Major League Baseball history. Did Gregorius used a face screaming in fear emoji for Stanton in his postgame recap and wrote "i feel bad for the balls".
    VERIFY: Is flu season over?

    VERIFY: Is flu season over?

    The CDC recommends flu shots for those who have not gotten vaccinated while strains continue to circulate. Unfortunately, if you've already had the flu this season, you're not necessarily out of the woods.
    Samsung Galaxy S9 and S9+ 128GB Variants Launched in India

    Samsung Galaxy S9 and S9+ 128GB Variants Launched in India

    Also sharing the space is a 3300 mAh battery, that is supposed to offer 20+ hours of talk-time on 3G WCDMA. It remains to be seen whether the Galaxy J7 Prime 2 will be officially announced in the near future.
  • Navigating Facebook's new privacy settings

    Navigating Facebook's new privacy settings

    Facebook has introduced new privacy tools which are easier to find and give users full control over their data . Facebook also stated that in the coming weeks they will update their Terms of Service and Data Policy.
    Final Four to put power of prayer to test

    Final Four to put power of prayer to test

    I don't understand why Duke didn't go to their big men nearly every time down the court because they had the size on KU. The Wildcats play a fellow No. 1 seed in Kansas on Saturday, with a chance to advance to the NCAA national championship.
    Trump floats possibility of military funding his border wall

    Trump floats possibility of military funding his border wall

    President Trump has long said that Mexico will pay for the border wall - and Mexico has been just as insistent that it will not. Trump expressed that he made a mistake, against his own instincts, signing the agreement to avoid a government shutdown .
  • This is the rogue Chinese satellite set to crash into Earth

    This is the rogue Chinese satellite set to crash into Earth

    As of March 26, 2018, the station is expected to burn up sometime between Friday, March 30 and Tuesday, April 3 . The polar bears in the Arctic face many threats, but thankfully, Tiangong-1 is not one of them.
    Takeaways From White House's Semi-Denials of Pardon Talks

    Takeaways From White House's Semi-Denials of Pardon Talks

    Jeff Mason on where the Russian Federation investigation could be headed. In a statement to the Times , Dowd denied the report. Gates in 2016 about work the two men did in Ukraine.
    'Pacific Rim Uprising' is new No. 1 at box office

    'Pacific Rim Uprising' is new No. 1 at box office

    Although the Pacific Rim sequel tops the US box office in its opening weekend , it still pales in comparison to the Marvel film . You can take a look at the top 10 below, courtesy of Box Office Mojo , and check back on Tuesday for next weekend's predictions.


Popular

Trump Backs OC Against California's 'Illegal And Unconstitutional Sanctuary Policies'
Inmate information is already publicly available in a database called "Who's in Jail" for Orange County, south of Los Angeles. ICE spokeswoman Lori Haley wrote in an email late Monday that she would not comment "beyond what the Sheriff has said ".

Israel's Netanyahu Hospitalized With Fever, Cough
Prime Minister Netanyahu has been questioned several times since the start of 2017 and is a suspect in two separate cases. Netanyahu was reportedly driven to the hospital in his normal vehicle rather than in an ambulance.

Huawei P20 review: Hands-on
Introducing the Porsche Design Huawei Mate RS - one of the most sophisticated, yet most expensive smartphones announced so far. You'll find details on all of that and more below, so you can clearly see what's new, what's different and what's the same.

Monday Apple Rumors: Possible 2018 iPhone X Prices
Apple makes up approximately 1.3% of Triangle Securities Wealth Management's holdings, making the stock its 22nd biggest position. Apple has also filed a patent past year in which the company proposed to make an iPhone which can open and close like a book.

YouTuber attracts 1 million people to Fortnite stream
Google is more reluctant to remove entire videos from YouTube , but has been willing to do so with terrorism-related content. The stream even caught the attention of Alex Rubens, a member of YouTube's esports content partnerships team.

California sues Trump administration over census question
California Attorney General Xavier Becerra announced the state would file a lawsuit challenging what he called an "illegal" move. Commerce says that between 1820 and 1950, nearly every decennial census asked a question on citizenship in some form.

Syrian insurgents ready to quit last rebel town in Ghouta
Some 200,000 people are estimated to remain in Douma, including many who fled other parts of Ghouta as regime forces advanced. Syria's pro-government Al-Watan daily reported similar terms and said the parties had three days to study the offer.

Waymo and Jaguar to make driverless I-Pace electric SUVs
At a press conference today in New York, Waymo CEO John Krafcik announced the world's first premium electric self-driving auto . He said the Uber death was very sad "as is the deaths we have every day on the road from human errors and human behaviour".

China launches crude oil futures trading
At 9:24 a.m. (0224 GMT) prices were up 3.29 per cent at 430 yuan, with 19,122 lots, equal to 19.1 million barrels of oil, traded. This compares with global turnover of more than $10 trillion in worldwide oil futures, the world's biggest commodity market.

Karnataka to vote on May 12
True." Rahul Gandhi tweeted aout Amit Shah's blooper BJP IT Cell chief's tweet on the date of the Karnataka polls ahead of the EC. While the polling date coincided with what Malviya tweeted , the date for counting of votes was different.