Barclays and U.S. Renew Talks Over Toxic Mortgages Lawsuit
- DOJ sued last year after negotiations failed over penalty size
- Barclays was said to be willing to pay no more than $2 billion
A pedestrian passes signage outside a Barclays Plc bank branch in London.
Photographer: Luke MacGregor/BloombergThis article is for subscribers only.
Barclays Plc and the U.S. Justice Department, engaged in a legal battle over the suspected fraudulent sale of mortgage securities a decade ago, have revived discussions about reaching an out-of-court settlement, according to people with knowledge of the situation.
The Justice Department has responded in recent weeks to requests from the London-based bank to reopen negotiations, said the people, who asked not to be identified speaking about a confidential process. If successful, the lender would avoid a protracted trial and remove a major misconduct issue weighing on its share price.