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Attorney General Announces $20 Million Settlement with Wells Fargo

June 16th, 2020 by WCBC Radio

Maryland Attorney General Brian E. Frosh announced today that his Securities Division entered into a $20 million settlement with Wells Fargo & Company.  The Consent Order resolves financial crisis-era claims that Wells Fargo misled investors in its issuance of residential mortgage-backed securities (RMBS).  The $20 million settlement is the largest reached by a state for Wells Fargo’s financial-crisis era RMBS issuance.

 

“Wells Fargo allegedly misrepresented the quality of some of the loans backing its RMBS,” said Attorney General Frosh. “Wells Fargo’s misconduct contributed to the 2008 financial crisis.  This settlement will recoup losses that Maryland suffered through Wells Fargo RMBS investments while also providing additional funds for the State.”  

 

Between January 1, 2005 and January 1, 2009, Wells Fargo issued 119 RMBS, the majority containing prime mortgages, with some consisting of Alt-A and subprime mortgage loans.  As an issuer, Wells Fargo was required to disclose complete and accurate information about the loans backing its securities.  But through two channels, Wells Fargo received information that its disclosures were inaccurate with respect to certain loans.

One Response to “Attorney General Announces $20 Million Settlement with Wells Fargo”

  1. June 18, 2020 at 8:50 pm, patricia ann smith said:

    Why are we seeing differing amounts. $142 million $30 billion, now $20 million. When are we receiving out money and how much?

    Reply

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