Barclay’s Capital Fined $16.5 Million For Supervision Violations: How You As An Investor Can Benefit

Barclay’s Capital was fined more than $16.5 million after allegedly not properly supervising two of its former mortgage bond traders. The two residential mortgage-backed bond traders “made false or misleading statements to Barclays RMBS customers, including false or misleading about the price at which Barclays had bought the securities; the amount of profit Barclays was making for facilitating the trades; and who owned the securities, including creating a fictional third-party to create the appearance of price negotiations,” according to the Securities and Exchange Commission (SEC). The traders were also alleged to have added excessive mark-ups on certain transactions without notifying their customers. The press release also stated that “In trading non-agency RMBS, Barclays purchased the securities for its own account and then sold them from its own account to its customers. Barclays did not charge a commission on the trades. In many instances, the purchase and sale took place within minutes or hours and involved little or no risk to Barclays. The false or misleading statements led customers to accept less, or pay more, for securities than they otherwise might have accepted or paid.” Between June 2009 and December 2012, Barclays gained $15.5 million in profits because of this. If you invested with Barclays Capital, please call our law offices today to find out how you may be able to recover those losses.