The bank denied the allegations against it but agreed to a lower-than-expected settlement.

Barclays will pay $2 billion to resolve claims that it mis-sold toxic mortgage-backed securities that helped contribute to the 2008 financial tsunami, the US Department of Justice announced last week. 

The UK-based lender, which offers wealth management services, denied misleading investors about the quality of the mortgage loans tied to the instruments and allegations it had committed mail and bank fraud. 

Chief executive Jes Staley described the settlement as “fair and proportionate”.

Barclays’ deal is at the lower end of the spectrum, with Credit Suisse agreeing in 2016 to pay a combined $5.3 billion in settlement and consumer relief, while Deutsche Bank settled for $7.2 billion in January last year.

The settlement could help revive investors’ confidence in Barclays, as analysts had initially anticipated a larger fine.