Investors Seek Probe Of $19B In Wells Fargo MBS

Law360, New York (January 5, 2012, 8:17 PM EST) -- A group of institutional bondholders has asked U.S. Bank NA and HSBC Holdings PLC, in their capacity as trustees, to investigate mortgage pools securing $19 billion in residential mortgage-backed securities issued by Wells Fargo & Co., counsel for the bondholders said Thursday.

The bondholder group, which includes the world's largest bond fund BlackRock Financial Management Inc. and Pacific Investment Management Co. LLC, holds more than 25 percent of the voting rights in 48 Wells Fargo-affiliated trusts that issued the RMBS before the financial crisis.

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