(Updates with further details on settlement, background on
By Nate Raymond and Margaret Chadbourn
NEW YORK/WASHINGTON, April 24 Barclays Bank PLC
will pay $280 million to Fannie Mae and
Freddie Mac to settle claims that it sold them faulty
mortgage-backed securities during the housing bubble, a U.S.
regulator said on Thursday.
The settlement announced on Thursday resolves claims in two
lawsuits filed in New York by the Federal Housing Finance Agency
(FHFA), the conservator since 2008 for the government-controlled
The deal marked the 11th settlement the FHFA has reached in
litigation that commenced in 2011 when the agency filed 18
lawsuits over about $200 billion in mortgage-backed securities,
an investment product at the center of the recent global
The FHFA's main case against Barclays accused the British
bank of misleading Fannie Mae and Freddie Mac into buying $4.9
billion in mortgage-backed securities that later went sour.
As part of the deal, Barclays will pay $227 million to
Freddie Mac and $53 million to Fannie Mae, the FHFA said.
Barclays said in a statement it was pleased to have reached
a settlement and added it would not impact the bank's 2014
To date, the FHFA has recovered $15.9 billion in direct
connection with the lawsuits over similar securities, a
spokeswoman for the agency said.
The accord with Barclays follows a $9.3 billion settlement
last month with Bank of America Corp. Of that sum, $5.83
billion stemmed from claims in the 2011 lawsuits, the FHFA said.
Other banks that have reached settlements include JPMorgan
Chase & Co, Citigroup Inc, Deutsche Bank
AG and Morgan Stanley.
The FHFA also reached a separate $335.2 million accord with
Wells Fargo & Co, which it did not formally sue.
U.S. District Judge Denise Cote, who is overseeing all but
one of the remaining lawsuits, has scheduled September trial
dates for Goldman Sachs Group Inc and HSBC Holdings
The FHFA in a statement said it "remains committed to
satisfactory resolution of the remaining actions."
The case is Federal Housing Finance Agency v. Barclays Bank
Plc, et al, U.S. District Court, Southern District of New York,
(Reporting By Margaret Chadbourn; Editing by Chris Reese and