It has been reported that Barclays Plc will pay USD144 million in cash to Enron Corp. to settle a litigation dispute.
Enron shareholders and bondholders have filed lawsuits against several banks, claiming that they were instrumental in the fraud.
The settlement will still allow Barclays to seek claims worth USD310 million from Enron’s bankruptcy.
“Barclays believes that it is in the best interests of shareholders that the litigation is resolved,” says a spokesman for Barclays. “The settlement will have no impact on Barclays earnings in 2006 as an adequate provision had already been made for the likely cost in prior periods.”