NEW YORK--Wells Fargo & Co. agreed to pay $ 125 million to a group of pension funds and other investors to resolve the allegations, which the Bank failed to warn the risks of mortgage-backed securities poorly written and supported by investors.
The proposed regulations was filed Wednesday in Federal Court in California and represents instituted by Detroit pension funds, the County of Alameda, New Orleans, Guam and other plaintiffs. The regulation is subject to the approval of the Court.
Mortgage-backed securities have been sold by Wells Fargo in 2005 and 2006. Investors, stated in their complaint that in its bid to collect a fee, the denatured Bank and omitted details that show that the titles were supported by mortgages of poor quality sold to people without appropriate documentation. The Bank has denied any wrongdoing.
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