Barclays to Face Off Against U.S. Over ‘Craptacular’ Loans
- U.S. sues over defaults on billions in securitized mortgages
- Investors were deceived about risk of securities, DOJ says
Barclays Sued Over Residential Mortgage-Backed Securities
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The U.S. Justice Department sued Barclays Plc for fraud over its sale of mortgage bonds after the bank balked at paying the amount the government sought in settlement negotiations.
The lawsuit announced on Thursday is rare for big banks, which typically negotiate a settlement with the government rather than risk drawn-out litigation and a possible trial. The breakdown in talks suggests that the bank is willing to take its chances with incoming enforcement officials in the Trump administration. The bank has lined up a law firm whose top lawyer is known for his aggressive defense of clients, including Lt. Col. Oliver North.