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Friday, 23 December 2016

Barclays refuses to settle with US DoJ over 'craptacular loans' | Business | The Guardian

Barclays refuses to settle with US DoJ over 'craptacular loans' | Business | The Guardian:
"Barclays is refusing to settle with the US Department of Justice over allegations it deliberately sold mortgage bonds to investors that it knew contained “craptacular loans”.

The DoJ’s legal filing outlines an array of colourful descriptions of the types of mortgages that it alleges were used by Barclays to package up in bonds – known as residential mortgage bond securities – which could be sold on to investors.

It accuses Barclays of selling investors RMBS “backed by loans it knew were made to borrowers who were not creditworthy and which were supported by house appraisals it knew were inflated”."

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