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US justice department accuses Barclays over mortgage mis-selling
Source: The Guardian
US justice department accuses Barclays over mortgage mis-selling
Attorney general alleges ‘irresponsible and dishonest’ practices
by UK bank in selling home-loan bonds before financial crisis
Jill Treanor City editor
Thursday 22 December 2016 22.59 GMT
The US department of justice has accused Barclays of jeopardising the financial position of millions of American homeowners over a decade-old mortgage bond mis-selling scandal.
The DoJ is now taking the bank to court, in what was thought to be the first time an institution had failed to reached a settlement with the US authorities over the sale of residential mortgage-backed securities (RMBS) in the run-up to the banking crisis. Responding to the news on Thursday night, Barclays said it would fight the case.
Loretta Lynch, the US attorney general, said: “Financial institutions like Barclays occupy a position of vital public trust. Ordinary Americans depend on their assurances of transparency and legitimacy, and entrust these banks with their valuable savings.”
As the DoJ issued its civil claim in the New York courts, Lynch said: “As alleged in this complaint, Barclays jeopardised billions of dollars of wealth through practices that were plainly irresponsible and dishonest. With this filing, we are sending a clear message that the department of justice will not tolerate the defrauding of investors and the American people.”
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Attorney general alleges ‘irresponsible and dishonest’ practices
by UK bank in selling home-loan bonds before financial crisis
Jill Treanor City editor
Thursday 22 December 2016 22.59 GMT
The US department of justice has accused Barclays of jeopardising the financial position of millions of American homeowners over a decade-old mortgage bond mis-selling scandal.
The DoJ is now taking the bank to court, in what was thought to be the first time an institution had failed to reached a settlement with the US authorities over the sale of residential mortgage-backed securities (RMBS) in the run-up to the banking crisis. Responding to the news on Thursday night, Barclays said it would fight the case.
Loretta Lynch, the US attorney general, said: “Financial institutions like Barclays occupy a position of vital public trust. Ordinary Americans depend on their assurances of transparency and legitimacy, and entrust these banks with their valuable savings.”
As the DoJ issued its civil claim in the New York courts, Lynch said: “As alleged in this complaint, Barclays jeopardised billions of dollars of wealth through practices that were plainly irresponsible and dishonest. With this filing, we are sending a clear message that the department of justice will not tolerate the defrauding of investors and the American people.”
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Read more: https://www.theguardian.com/business/2016/dec/22/us-justice-department-accuses-barclays-over-mortgage-misselling
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