The US Department of Justice (DoJ) is suing Barclays and two of its executives over alleged fraudulent mortgage-backed securities (MBS) following a breakdown in talks to reach a settlement.
Barclays this morning released a stock exchange announcement saying the bank "rejects the claims made in the complaint" by the DoJ. The civil complaint filed, according to the Financial Times, says the bank "securitised billions of dollars of loans it knew had material defects" and financed lenders it knew were issuing mortgages to clients who would be unable to repay them. The loans then defaulted "at exceptionally high rates early in the life of the deals". Barclays' full statement said: "Barclays notes the complaint filed by the DoJ today in the US District Court for the Eastern...
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