Barclays Said Trying to Cap U.S. Mortgage Penalty at $2B

Barclays Plc is trying to draw a line at $2 billion in penalties to settle a U.S. investigation into its sale of mortgage securities after it received an opening offer that it considered too high, according to a person with knowledge of the situation.

The Justice Department’s starting point for negotiations wasn’t disclosed but was less than the $14 billion initially presented by the government to Deutsche Bank AG in its talks with the U.S. over similar allegations, two people with knowledge of the matter said. The size of the potential penalty has since been reduced in the Barclays negotiations, one of ...