Barclays to Pay $19.5M Penalty for $17.7B Excess Debt Sale

Barclays PLC BCS has agreed to pay $19.5 million as settlement charges in a lawsuit filed by shareholders in Manhattan. The company was accused of securities fraud as it sold $17.7 billion debt above the regulatory limit. This was reported by Reuters.Details of the Lawsuit Faced by BarclaysShareholders asserted that they faced monetary loss by relying on BCS’ assurances concerning its policies and procedures. The bank claimed it adhered to regulatory standards and remained committed to strong internal controls.In March 2022, Barclays acknowledged that it sold $15.2 billion more structured and exchange-traded notes in the past five years than the $20.8 billion limit approved by U.S. regulators.Four months later, the oversold amount jumped to $17.7 billion and Barclays offered to repurchase the excess amount while keeping aside £1.59 billion ($2.01 billion) for the overissuance.Further, Barclays revised its 2021 financial statements, with its executives describing the overissuance as a “self-inflicted” issue that was “entirely avoidable.”This February, U.S. District Judge in Manhattan, Katherine Polk Failla, denied dismissal of the lawsuit, stating that shareholders could try to prove that Barclays officials, including former CEO Jes Staley, were "actionably reckless."The lawsuit addressed investors in Barclays' American depositary receipts from Feb. 18, 2021 to Feb. 14, 2023.BCS Zacks Rank & Price PerformanceOver the past six months, shares of Barclays have gained 22.1% against the industry’s decline of 7.7%.Image Source: Zacks Investment ResearchCurrently, BCS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Litigations Faced by Other Finance FirmsThis September, The Toronto-Dominion Bank’s TD U.S. broker-dealer unit, TD Securities USA, agreed to pay more than $20 million in a settlement with U.S. authorities over allegations of manipulations of the U.S. Treasuries market.TD will pay a $12.5 million criminal penalty to settle civil investigations by the SEC and the Financial Industry Regulatory Authority.Additionally, a criminal fine of roughly $9.5 million has been levied on TD as per the agreement. Further, the bank has committed to pay $4.7 million to compensate victims and $1.4 million in forfeiture.Similarly, Wells Fargo & Company WFC has been accused of underpaying interest to clients participating in its cash sweep program.The plaintiff, Darren Cobb, alleged that WFC breached its fiduciary duty, violated principles of fair dealing and committed breach of contract and unjust enrichment. The lawsuit alleged that WFC didn't pay enough interest on uninvested cash while making a significant profit from these funds, leading to substantial financial loss for its clients.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wells Fargo & Company (WFC): Free Stock Analysis Report Barclays PLC (BCS): Free Stock Analysis Report Toronto Dominion Bank (The) (TD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks