Barclays Dared U.S. to Sue Over Mortgages, a Faceoff Long Coming
- As others paid billions, U.K. bank prepared for court fight
- Legal charge to be led by firm that represented Oliver North
Barclays Sued by U.S. Over 'Craptaculuar' Loans
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Barclays Plc’s management team, facing a U.S. demand that it pay up over mortgage misconduct from the financial crisis, dared prosecutors to sue. The Justice Department obliged.
After failing to agree with prosecutors on a price to put the U.S. investigation behind it, the bank was slapped with a civil suit in Brooklyn on Thursday. The U.S. accused the firm of selling $31 billion of defective mortgage-linked securities into the market under false pretenses from December 2005 through 2007.