How To Guide For: A Look At Why The Department of Justice Sued Barclays
According to Reuters -- The U.S. Department of Justice(DOJ) on Thursday sued Barclays for fraud in the sale of mortgage securities in the run-up to the financial crisis. According to The DOJ site -- The United States Department of Justice filed a civil complaint in the Eastern District of New York against Barclays Bank PLC and several of its United States affiliates, alleging that Barclays engaged in fraudulent scheme to sell residential mortgage-backed securities (RMBS) supported by defective and misrepresented mortgage loans. As alleged in the complaint, from 2005 to 2007, Barclays personnel repeatedly misrepresented the characteristics of the loans backing securities they sold to investors throughout the world, who incurred billions of dollars in losses as a result of the fraudulent scheme. The suit also names as defendants two former Barclays executives: Paul K. Menefee, of Austin, Texas, who served as Barclays' head banker on its subprime RMBS securitizations, and John T. Carroll, of Port Washington, New York, who served as Barclays' head trader for subprime loan acquisitions. To get a more in depth look at why the U.S. Department of Justice sued Barclays click on the pictures below to read the articles.