Playing long game in tussle with justice department has resulted in penalty investors can stomach
They fought the law, and the law won? At first glance, that is how Barclays’ $2bn (£1.4bn) settlement with the US Department of Justice may seem. The UK bank refused a deal with the DoJ 16 months ago but is now having to pay a large bill for polluting the financial system with mortgage junk – aka, residential mortgage-backed securities – between 2005 and 2007.
But resistance was not futile, which is the critical point. The sums are everything. Nobody will ever confirm figures, but it was widely reported that Barclays was offered a settlement at about $5bn in 2016. If so, chief executive Jes Staley’s threat to take the case to court was justified. The figure has more than halved.
Continue reading...from US news | The Guardian https://ift.tt/2E5hlzI
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