WELLS FARGO TO PAY $2B FINE OVER RISKY SECURITIES
Wells Fargo and several of its affiliates will pay a civil penalty of $2.09 billion for allegedly misrepresenting the quality of risky residential mortgagebacked securities that the banking giant originated and sold before the financial crisis, the U.S. Department of Justice said Wednesday. Investors, including federally insured financial institutions, suffered billions of dollars in losses when the securities defaulted, government attorneys said. Wells Fargo agreed to the settlement without admitting liability. However, Acting Associate Attorney General Jesse Panuccio, in a formal statement, said: “This settlement holds Wells Fargo accountable for actions that contributed to the financial crisis.”