Friday, December 23, 2016

Barclays sold bad loans as good loans, faces securities fraud charges

The US Department of Justice is suing Barclays for alleged mortgage securities fraud.

It claims that Barclays misled investors about the quality of loans backing securities in the run-up to the financial crisis.

The banking giant is under investigation by US authorities.

In September the US asked Deutsche Bank for $14bn to settle a mortgage investigation.

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."

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