March 29, 2018 / 1:34 PM / 21 days ago

BRIEF-‍Barclays Reaches $2 bln RMBS Settlement With United States Department Of Justice

March 29 (Reuters) - Barclays Plc:

* ‍BARCLAYS REACHES SETTLEMENT WITH UNITED STATES DEPARTMENT OF JUSTICE IN RELATION TO RESIDENTIAL MORTGAGE-BACKED SECURITIES

* ‍UNDER TERMS OF SETTLEMENT, BARCLAYS HAS AGREED TO PAY A CIVIL MONETARY PENALTY OF $2,000 MILLION (£1,420 MILLION), WHICH WILL BE RECOGNISED IN Q1 2018.​

* ‍THIS WILL RESULT IN A PRO FORMA NEGATIVE IMPACT ON 31 DECEMBER 2017 COMMON EQUITY TIER 1 RATIO OF APPROXIMATELY 45 BASIS POINTS.​

* ‍SETTLEMENT RESOLVES ALL ACTUAL AND POTENTIAL CIVIL CLAIMS BY DOJ RELATING TO BARCLAYS’ SECURITISATION, UNDERWRITING AND SALE OF MORTGAGE- BACKED SECURITIES IN PERIOD 2005-2007.​

* ‍JES STALEY, BARCLAYS CEO, COMMENTED: “I AM PLEASED THAT WE HAVE BEEN ABLE TO REACH A FAIR AND PROPORTIONATE SETTLEMENT WITH DEPARTMENT OF JUSTICE. IT HAS BEEN A PRIORITY FOR THIS MANAGEMENT TEAM FROM START TO RESOLVE THESE HISTORIC ISSUES IN A TIMELY AND APPROPRIATE MANNER WHEREVER POSSIBLE.​

* ‍COMPLETION OF OUR RESTRUCTURING IN 2017, AND PUTTING SIGNIFICANT LEGACY MATTERS LIKE THIS ONE BEHIND US, MEAN BARCLAYS IS WELL POSITIONED TO PRODUCE STRONGER EARNINGS GOING FORWARD, AND TO START RETURNING A GREATER PROPORTION OF THOSE EARNINGS TO OUR SHAREHOLDERS OVER TIME.​ ​ Source text for Eikon: Further company coverage: (Reporting By Sinead Cruise)

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