Barclays to pay $2bn fine to settle mis-selling probe

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Barclays has agreed to pay $2bn in civil penalties for allegedly causing billions of dollars of losses to investors by engaging in a fraudulent scheme to sell residential mortgage-backed securities between 2005 and 2007.

The US Department of Justice has also agreed a settlement with two former Barclays executives. According to the terms of the deal, Paul K Menefee and John T Carroll have agreed to pay $2m to resolve claims brought against them individually for their role in brokering subprime RMBS securitisations.

“This settlement reflects the ongoing commitment of the Department of Justice, and this Office, to hold banks and other entities and individuals accountable for their fraudulent conduct,” said Richard Donoghue, the United States Attorney for the eastern district of New York.