Barclays to Pay $325 Million to End NCUA Mortgage-Bond Lawsuits
- Settlement resolves claims that bank sold faulty securities
- Credit unions bought more than $555 million of mortgage bonds
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Barclays Plc will pay $325 million to settle a U.S. regulator’s allegations that it misled credit unions in the sale of mortgage-backed securities.
The accord resolves 2012 lawsuits that the National Credit Union Administration filed against a U.S. investment-banking unit of the London-based lender. The regulator accused the Barclays unit of selling more than $555 million of securities to U.S. Central Federal Credit Union and Western Corporate Federal Credit Union, while misleading the buyers about the quality of the underlying loans.