Wells Fargo To Pay $11M In SEC's Wachovia CDO Suit

Law360, New York (April 5, 2011, 3:08 PM EDT) -- Wells Fargo & Co. agreed Tuesday to pay $11 million to settle U.S. Securities and Exchange Commission claims that Wachovia Corp. units pumped up the prices of mortgage-backed collateralized debt obligations, even as the housing market began to collapse.

The SEC alleged that Wachovia, now a unit of Wells Fargo, engaged in misconduct in the sales of two CDOs, Grand Avenue II and Longshore 3, in late 2006 and early 2007, when strains on the housing market began to become clear.

Wells Fargo purchased Wachovia in...
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