Barclays has agreed to a multi-billion-dollar settlement to resolve allegations that it misled investors about the quality of non-prime residential mortgage-backed securities.

The London-based investment banking firm Thursday disclosed that it has reached a settlement with the U.S. Department of Justice.

At issue is the securitization, underwriting and sale of 36 subprime and Alt-A RMBS deals between 2005 and 2007 by Barclays Capital Inc. and several of its affiliates.


Source: Mortgage Daily