BARCLAYS FACES LEGAL ACTION FROM US JUSTICE DEPARTMENT OVER USD31 BILLION SUBPRIME MORTGAGE SCHEME
January 1st, 2017
UK-based Barclays plc is being sued by the United States Department of Justice (DoJ), which alleges the bank was involved in mortgage securities fraud affecting more than USD31 billion’s worth sub-prime loans in the years immediately prior to the global financial crash of 2008.
The DoJ will seek civil penalties from Barclays by arguing that the bank ran a fraudulent scheme to sell residential mortgage-backed securities (RMBS) by means of defective and misrepresented mortgage loans from 2005 to 2007.
The suit also names Paul K Menefee, of Austin, Texas - ...
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