Barclays Reaches $325M Settlement With National Credit Union Agency Over US Mortgage Claims
Source: ibtimes
By Aditya Kondalamahanty
British bank Barclays PLC agreed to pay $325 million to resolve two lawsuits related to the sale of residential mortgage-backed securities (RMBS) to now-defunct credit unions in the United States. The bank said it continues to face litigation from similar claims in the U.S.
Barclays said Monday it will include a provision for the settlement in its third-quarter results, which the bank will report Oct. 29. According to the National Credit Union Agency (NCUA), Barclays is settling without admitting any wrongdoing. Monday’s settlements will bring the agency’s recoveries linked to RMBS sales by various banks to $2.2 billion.
"The agency has a statutory obligation to secure recoveries for credit unions and ensure that consumers remain protected, and we take that responsibility very seriously,” Debbie Matz, NCUA chairwoman, said in a news release, according to the New York Times.
Barclays underwrote about $39 billion in mortgage securities in the U.S. between 2005 and 2008, according to a company statement in July.
FULL story at link.
British Bank Barclays reached a settlement with the NCUA in the US over the sale of mortgage-backed securities to credit unions. Pictured: Trader Peter Tuchman shares a laugh with a specialist trader from Barclays Capital on the floor of the New York Stock Exchange on June 11, 2010. Reuters/Brendan McDermid
Read more: http://www.ibtimes.com/barclays-reaches-325m-settlement-national-credit-union-agency-over-us-mortgage-claims-2147838
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