SEC Has Eye On Wells Fargo Over MBS Disclosures

Law360, New York (February 28, 2012, 7:15 PM EST) -- Wells Fargo & Co. has received notice that the U.S. Securities and Exchange Commission may take action over its disclosures in offering documents for mortgage-backed securities, after several private lawsuits alleged the company made misleading statements in such documents, Wells Fargo said Tuesday.

The company said in its annual 10-K filing with the SEC that government agencies continued to investigate whether Wells Fargo violated fair lending rules in its mortgage origination business and whether it properly disclosed the risks in residential mortgage-backed securities it issued. Wells...
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