Following a three-year investigation into allegations that it caused billions of dollars of losses to investors by “engaging in a fraudulent scheme” to sell residential mortgage-backed securities between 2005 and 2007, Barclays has agreed to pay $2 billion as part of a settlement with the U.S. Department of Justice (DOJ).
The DOJ said the firm misled investors about the quality of the mortgage loans backing those deals and committed violations of mail fraud and bank fraud. According to the Justice Department’s statement, Barclays disputes the allegations.
The fine is less than analysts had expected and less than the penalties paid by other foreign banks facing similar claims. In December 2016 Credit Suisse paid $5.3bn as a settlement and to consumers. Deutsche Bank settled at $7.2bn a month later. At the time Barclays said it would not settle and the justice department launched legal proceedings.