Barclays PLC on Thursday said it would pay $280 million to
settle a lawsuit filed by a top U.S. regulator over mortgage
securities the bank sold to mortgage companies Fannie Mae and
Freddie Mac during last decade's housing bubble.
The Federal Housing Finance Agency, which controls the
government-backed mortgage giants, sued Barclays and 17 other
financial institutions in 2011--seeking unspecified damages on
about $200 billion in mortgage investments. The FHFA sued Barclays
for over $4.9 billion in securities sold to Fannie and Freddie
between 2005 and 2007.
Freddie will collect $227 million and Fannie will receive $53
million.
A Barclays spokesman said the settlement wouldn't impact 2014
earnings. "We are pleased to have resolved this matter," the
spokesman said. Barclays didn't admit to wrongdoing in the
settlement.
The FHFA has now settled 13 of the 18 lawsuits it filed three
years ago, bringing in $19.4 billion in settlements for Fannie and
Freddie
Write to Nick Timiraos at nick.timiraos@wsj.com
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