Wells Fargo Agrees To Pay $125 Million To Investors In Mortgage Lawsuit

(AP) NEW YORK -- Wells Fargo & Co. has agreed to pay $125 million to a group of pension funds and other investors to settle allegations the bank failed to warn investors of the risks the poorly-written mortgage backed securities.

The proposed settlement was filed Wednesday in a California federal court and represents lawsuits filed by the pension funds of Detroit, Alameda County, New Orleans, Guam, and other plaintiffs. The settlement is subject to court approval.

The mortgage-backed securities were sold by Wells Fargo in 2005 and 2006. The investors said in their complaint that in its bid to collect fees, the bank misstated and omitted details that show the securities were backed by poor quality mortgages sold to people without proper documentation. The bank denied any wrongdoing.

Comments

[Lolie Culley]

02:42 AM on 07/12/2011

They are now pushing people to file for bankruptcy, so that bankers can have the house free and clear and eliminate homeowners of the title legally. They know they don't have the legal way to evict homeowners, so they were filing fraudulant documents in court. Judges are allowing fraudulant documents to foreclose on peoples home. It is amazing how the legal and justice system in America became a COURT for CLOWNS.

[plaidsportcoat]

12:05 AM on 07/12/2011

Investors get to reap class action rewards because they are rich and the friends of the Supreme Court, who made it illegal for anyone else in the country to file a class action lawsuit. Only the rich guys.

[karen1p]

01:19 AM on 07/11/2011

Wells Fargo failed to warn investors?? How about Wells Fargo committed securities fraud as they failed to transfer any documentation to the NY Trusts as mandated by the Pooling and Servicing Agreement??? This makes them criminals. Securities fraud en masse is RICO violations.....racketeering worse than the maf!a

[structurequity]

12:13 AM on 07/11/2011

Why do the settlements never give an approximation of the actual loss. 125 million and what did the people lose? I fret continually that the ones who have a voice got treated to 1 trillion bail out and those who have to survive individually got and are getting the shaft.

[karen1p]

01:20 AM on 07/11/2011

Yes, the investors and the homeowners are getting shafted and the CEOs of the banks are making record bonuses. W....T.....F.....?????

[Lolie Culley]

07:17 PM on 07/10/2011

Trustees, lawyers, judges, and realtors are all part of the problem in this country. They are all part of the FRAUDSTER playing field. I h-a-t-e realtors, I call them hayenas.

[fineartgalaxy]

08:04 PM on 07/10/2011

Typical blame displacement: hate directed at the smallest players.

[Lolie Culley]

07:12 PM on 07/10/2011

We will hear more of these tomorrow and the next day. These kind of issue will be the number topic for another 30 years in American History. The government and the banks are the biggest corrupt and number one fraudster in the whole world. Don't buy foreclosed homes because you will never own them even after you pay your mortgage for 30 years of your lifetime. The biggest scam is sitting in the Recorders Home Office in this country. Most of these homes will never have CLEAR TITLE without releasing second deeds which most of these homes have and others liens. Trustees and Banks are selling these homes "as is" and when you signed this document, you are giving away your DUE PROCESS OF LAW. Always remember " the house inherit the liens. Sooner than later people will realized that our own government scam its own people. When times come there will be a riot on the street.

[17ladyslippers]

06:52 PM on 07/10/2011

They ran to settle.

$125 million - a drop in the bucket - just the cost of doing business - no jail time.

[big tom]

06:25 PM on 07/10/2011

every week another fraud story... allways same players wellsfargo boa chase. why is no one in prison?

[iam99]

12:33 PM on 07/10/2011

It is so good to know that they agree to pay for their guilt. Would really be a lousy system if they disagreed to pay their miniscule fine.

[giwel7]

11:43 AM on 07/10/2011

what happen to the "pick a loan" lawsuits with bank of america? did any of those actuallly help the homeowners?

[GetRealSoon]

01:08 PM on 07/10/2011

Helped about as much as the bail out did. = zero

[JBucknoff]

05:14 AM on 07/10/2011

$125M is a drop in the bucket penalty for them. Do realize how many lives they deliberately ruined just so some investment bankers and hedge fund managers could make $3Billion a year instead of only making $700M a year? And don't forget the domino effect throughout the economy and the world from all the former middle-class and lower-middle class families who lost everything and, therefore, have no money to spend (which would help businesses keep their employees).

[schatsie]

09:53 AM on 07/10/2011

and don't forget that 25 BILLION dollar tax credit from the Bush Paulson Goldman Sacks Treasury in October of 2008....You can thank Uncle Warren, the largest shareholder in Wells Fargo for that Tip from the Bush Treasury, uncle Warren who never met a dollar he didn't keep.

[big tom]

06:27 PM on 07/10/2011

how many people gotta get cheated for one person to steal 3 billion per year... i think paulson 2010 paid himself 5 billion. lots of investors got the shaft

[Steve Rockett]

02:22 AM on 07/10/2011

Let's just put every effing banker in prison and let them prove their innocence.

[schatsie]

09:55 AM on 07/10/2011

Heck, I don't care if they are innocent or not, that just depends on the laws that their Lobbiest have written for them, I just want them in jail (like those poor SOBs in Guantanamo) until the economy recovers and we have a middle class with financial stability again......Frankly I don't care if they rot there forever, it will be good for their expense accounts....

[ca va pas non]

03:15 AM on 07/11/2011

There is not a jail big enough to house all the cheaters in the banking industry. You're talking thousands.

[Seedomang]

01:34 AM on 07/10/2011

That's like throwing a high chair off the titanic!

[schatsie]

09:56 AM on 07/10/2011

Great comment! LOL...

[giwel7]

12:43 AM on 07/10/2011

it may be its more the other parties that accept the small settlements with no admission of guilt because if they do not accept it wells fargo and bank of america say "see you in court " and they will out spend the pension funds it legal fees and attempt to drag it out for years. its the game plan with all the banks it seems and so far no one is willing to call the bluff and take them to court

[CSNC]

12:05 AM on 07/10/2011

I have a WF mortgage loan...

... actually we call it a Hells Fargo loan.

H

[Steve Rockett]

02:23 AM on 07/10/2011

I have a Chitibank loan

[CSNC]

02:28 AM on 07/10/2011

Thanks Steve Rockett,

Your comment made me laugh.

H