Barclays pays $ 2 billion to settle US fraud case

Getty Images

Barclays has agreed to pay $ 2 billion (£1.4 bn) to settle a lawsuit brought by the U.S. government on the sale of mortgage-backed securities in the run up to the financial crisis.

The U.S. Department of Justice alleged that the bank had deceived investors about the quality of the loans backing the securities.

Two former executives of Barclays has also agreed to pay a total of $ 2 million.

Barclays did not admit his responsibility in the matter.

US attorney for the eastern district of New York, Richard Donoghue said: “The substantial penalty Barclays and its executives have agreed to pay is an important step in the recognition of the harm that has been caused to the national economy and to investors in residential mortgage-backed securities.”