Wells Fargo to Pay $125 Million to Settle Billion Mortgage-Backed Securities Fraud Case

Blah, blah, blah…

Pennies on the dollar…

I feel sooo much better now, don’t you?

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Wells Fargo to Pay $125 Million to Settle Mortgage-Backed Securities Case

Wells Fargo & Co. (WFC) agreed to pay $125 million to settle accusations by investors that the bank misled them about the risks of mortgage-backed securities it sold.

The plaintiffs in the consolidated group case, or class action, include the General Retirement System of Detroit, New Orleans Employees’ Retirement System and other public pensions, according to the proposed settlement filed yesterday in federal court in San Jose, California.

Wells Fargo, the largest U.S. home lender, and several investment banks that underwrote the securities were sued in 2009 over alleged violations of securities laws in connection with sales of $36 billion in mortgage pass-through certificates in 2005 and 2006.

The securities were backed by pools of mortgage loans that Wells Fargo or its affiliates originated or purchased. In 28 offerings, the bank misrepresented the quality of the loans, failing to disclose that it hadn’t followed appropriate underwriting standards and loans were made based on inflated appraisals, investors said in a complaint.

The bank and the underwriters deny wrongdoing, according to the proposed accord, which is subject to a judge’s approval.

Check out the rest here…

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4closureFraud.org

 

Comments
No Responses to “Wells Fargo to Pay $125 Million to Settle Billion Mortgage-Backed Securities Fraud Case”
  1. concerned says:

    ” a couple penises on the dollar.”

  2. This is such a discrace!!!!! I am speechless. But not surprized! They get to keep 99% percent of the bank heist. Who said crime does not pay!!!

  3. Jason Werner says:

    They got a nice deal for their shareholders, but there is no way this settlement will stick. Most FDIC-member banks refuse to fulfill their obligations under even their own settlements. Eventually, there’ll be justice with a fairer deal for the victims.

  4. The annual wining of the bulls ! This is what Wall Street must be saying, “Just cause we caused the collapse, got bailed out, we are doing settlements for penis on the dollar on our Ponzi Schem fraud and are now reaping enormous profits, without rehiring, people say bad stuff about us , We are doing gods work !”

  5. AliceN.Wunderland says:

    The Investors are between a rock and a hard place. They can’t admit they ‘own’ the loans because they have the IRS to contend with, they can’t admit they don’t because they have their pensioners to contend with..what to do, what to do. So who gets the money…how does that affect the bottom line…perhaps some insider can enlighten us.

    • lvent says:

      Isn’t that what the ILLEGAL AND UNCONSTITUTIONAL BAILOUTS were for, the TBTF to pay off the bondholders/investors and give themselves all big fat bonuses for socializing the debt after they stole and privatized our wealth into overseas bank accounts? Bondholders/ investors made gagillions and they took a gamble. MAINSTREET on the other hand were who was robbed blind in this whole PONZI SCHEME, I have no pity for the investors/ bonholders as Sheila Baird said INVESTMENTS FAIL and so do INVESTMENT BANKS. No one should be deemed TBTF. Ms. Baird said BEAR STEARNS should have been allowed to fail, that investment banks do fail from time to time. That is the risk they take. It is like LAS VEGAS up there on WALL STREET and MAINSTREET was used for the poker chips for their casino. THEY ALL CRAPPED OUT. TIME FOR _THEM _TO PAY THE PIPER NOW.

      • lvent says:

        I meanT make the TBTF pay for the robbery of our wealth. THE TBTF RANG THIS COUNTRY UP WITH TRILLIONS dollars of UNSUSTAINABLE DEBT with their PONZI SCHEME FRAUD..

    • lvent says:

      The investors made so much money they have nothing to whine about. How many times have we went to a casino and crapped out? The securitization expert said PRIVATE LABEL SECURTIES are riskier investments with higher yields. They know that. Mainstreet on the other hand had no idea they were bundling too many bad loans with good loans. That we were being set up fo fail by institutions that we trusted. I wonder how many investors lost their homes to fraudclosure? They are a bunch of whining crybabies who never wanted the gravy train to leave the station. They should all be in our shoes.

      • Readdocs says:

        One price banks will pay, generational distrust of banks. With that they can pretty much
        be prepared for the most of them to dry up and blow away like so much dust.
        A good majority of the people lived without doing business with banks before we launched
        into the land of credit cards, mandatory auto insurance, a throw away society.
        If no one listens, will there be a great crashing sound when the TBTF banks finally crash?

      • lvent says:

        You are right!!! My Grandparents grew up during the last Great Depression and never forgot the last time the same crooks did this to us. My Grandma paid with money orders, my Grandparents did not believe in using credit much and hid all of their money around the house.They never trusted the banks ever again.

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