Wells Fargo Agrees to Repay $1.4B in Settlement

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Posted: 11:05 AM Nov 18, 2009 Wells Fargo Agrees to Repay $1.4B in Settlement Three subsidiaries of Wells Fargo & Co. have agreed to repay customers about $1.4 billion to settle a lawsuit alleging the company improperly marketed risky investments as safe. Reporter: Associated Press Email Address: news@kolotv.com

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SAN FRANCISCO (AP) - Three subsidiaries of Wells Fargo & Co. have agreed to repay customers about $1.4 billion to settle a lawsuit alleging the company improperly marketed risky investments as safe.

California Attorney General Jerry Brown sued the bank in April over its sale of so-called auction-rate securities. The investment resembles corporate debt, except that interest rates are frequently reset at auctions.

A number of companies, charities and individual investors were told the securities were as safe as cash. But the $330 billion market collapsed in February 2008, and investors' accounts were frozen.

Wells Fargo agreed to buy back the securities from customers nationwide. It did not admit any wrongdoing in the settlement, announced Wednesday.

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Posted by: Jake Location: Reno on Nov 19, 2009 at 06:30 PM

The grandmas have always been good to me. Fresh horses to the tune of a billion four seems stiff, but what do I know about fraud accounting? Frisky investments could always go awry. Safe is as safe does...nothin'. stays home. tv. rocker.

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