Banking giant Barclays has agreed to pay the U.S. government $2 billion to settle charges alleging it “misled investors about the quality” of loans backing residential mortgage securities in the run-up to the 2007-2008 financial crisis. The BBC reports the bank did not admit liability in the case, and the settlement settles “all actual and potential civil claims” by the Justice Department related to the case. Chief Executive Jes Staley said Barclays was “pleased that we have been able to reach a fair and proportionate settlement.” U.S. Attorney Richard Donoghue said the settlement was an “important step in recognizing the harm that was caused to the national economy and to investors in residential mortgage-backed securities.” Barclay’s former subprime securitization chief Paul Menefee and former head trader for subprime loan acquisitions John Carroll also agreed to pay a total of $2 million to dismiss all claims against them, the BBC reported.
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