Barclays settlement termed as sweetheart deal by US Judge

A federal judge considering the settlement between Barclays Bank Plc and the Justice Department in context to criminal charges that the bank violated U.S. trade sanctions called it a “sweetheart deal.”

U.S. District Judge Emmet Sullivan said at a hearing that he was concerned about the settlement in which the bank has agreed to pay an amount of $298 million to resolve charges over its dealings with banks in Cuba, Iran, Libya, Sudan and Myanmar.

From in.news.yahoo.com:

“This is a sweetheart deal,” he said, adding that the average American citizen who gets caught robbing a bank does not get a deferred prosecution agreement like Barclays’.

“This concerns the court, and that should concern the government too,” Sullivan said.

The judge also questioned whether it amounted to a fine if the bank only paid back the money involved, and he said he wanted fuller answers at another hearing scheduled for Wednesday.

A Justice Department attorney defended the agreement and said the amount of money was “beyond what they earned.”

The London-based bank was charged with violating the International Emergency Economic Powers Act and the Trading with the Enemy Act as a result of $500 million in illegal transactions from 1995 through 2006, according to court documents filed on Monday.

Sullivan said that this is concerning for the court and should also be concerning the government.

A federal judge considering the settlement between Barclays Bank Plc and the Justice Department in context to criminal charges that the bank violated U.S. trade sanctions called it a “sweetheart deal.”

U.S. District Judge Emmet Sullivan said at a hearing that he was concerned about the settlement in which the bank has agreed to pay an amount of $298 million to resolve charges over its dealings with banks in Cuba, Iran, Libya, Sudan and Myanmar.

From in.news.yahoo.com:

“This is a sweetheart deal,” he said, adding that the average American citizen who gets caught robbing a bank does not get a deferred prosecution agreement like Barclays’.

“This concerns the court, and that should concern the government too,” Sullivan said.

The judge also questioned whether it amounted to a fine if the bank only paid back the money involved, and he said he wanted fuller answers at another hearing scheduled for Wednesday.

A Justice Department attorney defended the agreement and said the amount of money was “beyond what they earned.”

The London-based bank was charged with violating the International Emergency Economic Powers Act and the Trading with the Enemy Act as a result of $500 million in illegal transactions from 1995 through 2006, according to court documents filed on Monday.

Sullivan said that this is concerning for the court and should also be concerning the government.

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