Barclays to dole out $325M to end regulator suits

London-based lender Barclays PLC has agreed to pay $325 million to settle a U.S. regulator’s charges that it misled credit unions in the run up to the recession through the sale of mortgage-backed securities.

The National Credit Union Administration filed two suits in 2012 against a U.S. investment-banking unit of Barclays. The regulator accused the company’s unit of selling over $555 million of securities to Lenexa, Kan.-based U.S. Central Federal Credit Union and California-based Western Corporate Federal Credit Union, while misleading the credit unions about the quality of the underlying loans.

With the settlement, Alexandria, Va.-based NCUA agreed to dismiss its suits in federal courts against Barclays. The regulator, however, said it is still pursuing lawsuits against other financial firms, including Goldman Sachs Group Inc., UBS AG, Credit Suisse Group AG and Morgan Stanley.

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