Barclays to pay $2 billion fine over mortgage fraud claims

Washington: Barclays has agreed to pay $2 billion 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 justice department said on Thursday.

The department said the firm misled investors about the quality of the mortgage loans backing those deals and committed violations of mail fraud and bank fraud.

According to the justice department’s statement, Barclays disputes the allegations. Reuters