After its investigation, the DOJ found that Barclays violated the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The British bank allegedly committed mail fraud, wire fraud, bank fraud, and other misconduct.
In a statement, Richard Donoghue, U.S. Attorney for the Eastern District of New York, said the settlement “reflects an ongoing commitment of the DOJ to hold banks and other entities accountable for the fraudulent conduct.”
Doghue added that the huge penalty, which the British Bank and its former executives agreed to pay, is an important step. They recognized that their conduct harmed the national economy and RMBS investors.
Fair and proportionate settlement
On the other hand, Barclays CEO Jess Staley told CNN Money commented that the settlement is fair and proportionate. He added that the settlement agreement resolves all actual and potential allegations against the company by the DOJ.
In addition, Staley said the Barclays is “well-positioned” to boost profits and to return more of its earnings to shareholders.
