Wells Fargo Beats $116M Premature Redemption Suit

Law360, New York (April 13, 2012, 3:35 PM EDT) -- A California federal judge on Thursday dismissed a $116 million putative class action alleging Wells Fargo & Co. had prematurely redeemed securities that had to be phased out under Dodd-Frank reforms, ruling Wells Fargo could cash them in whenever it wanted.

The securities at issue are known as trust-preferred securities, and since 1996, they've been used by banks to increase their Tier I regulatory capital, which the Federal Reserve uses to determine their strength and financial stability.

But the Dodd-Frank Wall Street Reform and Consumer Protection...
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