LONDON (Alliance News) - The Federal Housing Finance Agency or FHFA, as conservator of Fannie Mae and Freddie Mac, Thursday announced a settlement with Barclays Bank PLC, related companies and some individuals for USD280 million.
The settlement resolves claims, in two lawsuits, alleging violations of federal and state securities laws in connection with private-label mortgage-backed securities purchased by Fannie Mae and Freddie Mac between 2005 and 2007.
One of the suits against the British lender alleged that it misled the mortgage giants into buying mortgage-backed securities worth USD4.9 billion, which went sour during the housing bubble.
Both cases are in the US District Court for the Southern District of New York. Following the agreement, Barclays will pay USD227 million to Freddie Mac and USD53 million to Fannie Mae.
This is the 13th settlement related to the 18 PLS lawsuits FHFA filed in 2011.
BARC.L settled up 1.3% on Thursday at 252.00 pence.
Copyright RTT News/dpa-AFX
Barclays (BARC)
