Despite ‘Sweetheart Deal’ Complaint, Judge Approves Barclays Settlement
A federal judge who criticized a $298 million U.S. settlement with the British bank Barclays as a “sweetheart deal” on Tuesday approved the pact on Wednesday after a hearing where he pressed for more details.
U.S. District Judge Emmet Sullivan wanted to know why no individual was charged in the plot to violate U.S. trade law by hiding transactions in sanctioned countries, according to stories in the National Law Journal and the Washington Post. There “has to be a paper trail” leading to a wrongdoer, he said.
He also questioned why shareholders should ultimately have to pay for the bank’s conduct. “Shareholders pay,” he said. “The bank doesn’t suffer.”
Justice Department lawyer Kevin Gerrity said senior managers were unaware of the wrongdoing, the NLJ story says. When bank officials discovered the misconduct, they notified the United States and cooperated in a $250 million internal investigation. As for shareholders, Gerrity said, it’s another matter whether they should sue the bank.
