Barclays Agrees to $19.5 Million Settlement Over Debt Sale Mishap

Reported about 16 hours ago

Barclays has reached a $19.5 million settlement in response to a lawsuit from shareholders who accused the bank of securities fraud after it sold $17.7 billion more in debt than permitted by regulators. The preliminary settlement, filed in Manhattan federal court, requires approval from Judge Katherine Polk Failla. Shareholders alleged financial losses due to Barclays' false assurances about meeting regulatory standards and internal controls. The bank previously admitted to overselling structured debt and notes significantly beyond the authorized amount, and while denying wrongdoing, it plans to repurchase the excess debt.

Source: YAHOO

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