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Barclays dragged to first quarter loss by giant US penalty

Analyst says the group's investment bank has 'saved the day' in an otherwise disappointing set of results

Barclays dragged to first quarter loss by giant US penalty

A £1.4bn settlement over the mis-selling of mortgage securities in the US wiped out profits at Barclays during the first quarter — a period of otherwise strong performance in the group's investment bank.

Barclays on Thursday reported a pre-tax loss of £236m, swinging from a profit of £1.7bn a year ago. This was largely the result of a near £2bn legal bill tied to the US Department of Justice fine and charges relating to the Payment Protection Insurance (PPI) scandal.

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