Barclays pushed into loss by US payout

Barclays pushed into loss by US payout

Barclays has been pushed into a first quarter loss after paying $2bn (£1.4bn) last month to settle a lawsuit brought by the US government over the sale of mortgage-backed securities.

The bank made a pre-tax loss of £236m, compared with a profit of £1,682m for the same time last year.

But excluding litigation costs, pre-tax profit rose by 1% to £1.7bn.

The bank said the US settlement resolved a significant decade-old legacy matter.

Chief executive Jes Staley said: “This quarter we also reached an agreement with the US Department of Justice to resolve issues related to the sale of Residential Mortgage-Backed Securities between 2005 and 2007.

“While the penalty was substantial, this settlement represents a major milestone for Barclays, putting behind us a significant decade-old legacy matter.”

Source: BBC News

Leave a Reply