Barclays swings to 1Q loss

LONDON — British banking giant Barclays swung to a loss in the first quarter as it set aside 2 billion pounds ($2.7 billion) to cover past misconduct, including allegations related to subprime mortgages in the United States.

The bank on Thursday reported a net loss of 764 million pounds, compared with net income of 190 million pounds in the same quarter last year. Barclays paid 1.4 billion pounds to settle a U.S. Justice Department complaint about residential mortgage-backed securities sold in 2005-2007 and set aside an additional 400 million pounds to cover the mis-selling of payment protection insurance in the U.K.

CEO Jes Staley says that “while the penalty was substantial, this settlement represents a major milestone for Barclays, putting behind us a significant decade-old legacy matter.”