Wells Fargo To Pay $24M To Settle Securities Lending Suit

Law360, New York (December 14, 2012, 2:31 PM EST) -- Sarasota County, Fla., said Friday that Wells Fargo Bank NA will pay $23.75 million to resolve allegations that Wachovia Bank NA, which Wells Fargo bought in 2008, shouldn't have invested the county's money in Lehman Brothers Holdings Inc. and a risky collateralized debt obligation.

The county had accused the bank of mismanaging its securities lending portfolio in 2007 and 2008 with the investment in Lehman, which collapsed in 2008, and with a CDO from Altius Funding.

Karen Rushing, the county's clerk of court and comptroller, said...
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