BROKERAGE SETTLEMENT: Wells Fargo’s brokerage firm has agreed to pay $6.58 million to settle federal civil charges that it failed to adequately inform investors about the risks of mortgage-related securities it sold.
SALES DURING HOUSING BUST: The Securities and Exchange Commission says Wells Fargo Brokerage Services improperly sold the high-risk investments to cities and towns, non-profit institutions and other investors in 2007, when the housing bust was under way.
SETTLEMENT TERMS: The firm, now called Wells Fargo Securities and based in Charlotte, N.C., is paying a $6.5 million civil fine and $81,571 in restitution plus interest in the settlement. A former firm vice president also agreed to settle the charges. He and Wells Fargo, the No. 4 U.S. bank, neither admitted nor denied wrongdoing.
Source: CBS News