Page 53 - Barclays Bank (B)

Mortgage-backed Securities

Barclays paid £1.4bn ($2bn) to

settle its U.S. mortgage-backed

securities fraud case but did not

admit liability.

The U.S. had alleged that the bank

had misled investors about the quality of loans backing
the securities in the run-up to the financial crisis.

U.S. attorney, Richard Donoghue said:

"The substantial penalty Barclays and its

executives have agreed to pay is an important

step in recognising the harm that was caused to
the national economy and to investors in

residential mortgage-backed securities."

Federal prosecutors said that the alleged scheme
involved 36 residential mortgage-backed security deals

covering more than $31bn of mortgage loans. Investors

had included credit unions, pension plans, charitable and

religious organisations, university endowments, and
financial institutions. More than half of the mortgages

backing the securities defaulted, the suit alleged.

Barclays chief executive Jes Staley said the bank was

"pleased that we have been able to reach a fair

and proportionate settlement".