August 14, 2012

A SIMPLE MATTER OF FRAUD, NOT OF BAD CREDIT:

Wells Fargo in $6.5 million SEC settlement over risk disclosure (James O'Toole, August 14, 2012, CNNMoney) 

Wells Fargo will pay $6.5 million to settle charges that it failed to disclose the risks of complex investments it sold to municipalities, non-profits and other customers, the Securities and Exchange Commission said Tuesday.

In 2007, the SEC said, Wells Fargo recommended that its institutional clients, typically interested in more conservative investments, buy into complex investments tied to high-risk mortgage-backed securities. Wells Fargo staff made these recommendations without understanding "the true nature, risks, and volatility behind these products," and typically without sharing those risks with customers, the SEC said.

Posted by at August 14, 2012 3:00 PM
  

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