The US justice department has sued Barclays Plc for fraud over its sale of mortgage bonds after the bank had baulked at paying the amount the government was seeking in settlement negotiations. The lawsuit announced on Thursday is rare for big banks, which typically negotiate a settlement with the government rather than risk drawn-out litigation and a possible trial. The breakdown in talks suggests that the bank is willing to take its chances with incoming enforcement officials in the Trump administration. The bank has lined up a law firm whose top lawyer is known for his aggressive defence of clients, including Lt Col Oliver North of 1980s Iran-Contra Affair fame. Barclays is one of a handful of European lenders, including HSBC Holdings Plc, Credit Suisse Group AG, UBS Group AG and Royal Bank of Scotland Group Plc, that have yet to settle long-running US probes into their sale of mortgage bonds ahead of the financial crisis. The Barclays lawsuit marks the first time the justice depa...
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