July 12, 2012 |
No 1. home lender Wells Fargo & Co. has agreed to pay at least $175 million to settle federal allegations that it systematically overcharged minorities during the frenzied housing boom, including steering African Americans and Latinos into more expensive subprime mortgages. The agreement was announced Thursday by the Justice Department, which described it as the second-largest fair-lending settlement in the department's history. (In the largest, reached last December, Bank of America Corp. agreed to pay $335 million to settle claims against Countrywide Financial Corp., the aggressive Calabasas lender it acquired in 2008.)
April 10, 2012 |
A nonprofit group has filed a bias complaint against Wells Fargo & Co. accusing the lender of doing inferior maintenance on the foreclosed homes it owns in what the nonprofit calls Latino and black neighborhoods compared with those it owns in white areas. The complaint by the National Fair Housing Alliance to the U.S. Department of Housing and Urban Development comes after the group released a report last week concluding that in nine big American cities, foreclosed homes were taken much better care of in what it calls white neighborhoods than in those with residents of color.
April 29, 2010 |
More than a year after taking over Wachovia Corp. during the worst of the financial crisis, Wells Fargo & Co. has finally put its name on 87 Wachovia branches in California. The switchover took place last weekend. At the same time, the rest of Wachovia's 187 California branches were merged into nearby locations owned by Wells. The company also closed 18 Wells offices as part of the integration. The Wachovia locations, originally offices of Oakland-based World Savings, were generally smaller and less prominent than Wells Fargo branches.
November 20, 2009 |
Who deserves credit for forcing Wells Fargo & Co. to buy $1.4 billion in troubled securities from small investors? California Atty. Gen. Jerry Brown and a group of regulators from other states announced separate settlements Wednesday requiring Wells to repurchase so-called auction-rate securities that had been frozen in the credit crunch since early last year. About half of the money is to go to California residents. But the attorney general's office and the regulators group got into a spat over who was responsible for the outcome, with each saying it led the way. Brown's office said it reached a pact with Wells a day before the North American Securities Administrators Assn.
December 5, 2012 |
Federal regulators have accused a Wells Fargo investment banker of passing tips about pending mergers to nine others in an insider-trading ring. A federal civil lawsuit filed Wednesday by the Securities and Exchange Commission said John Femenia and his nine associates, also named as defendants, made more than $11 million by trading on the non-public information. The SEC obtained a court order freezing the assets of the defendants and two companies associated with them, according to William P. Hicks, the associate director for enforcement at the SEC in Atlanta.
October 10, 2012 |
WASHINGTON - Federal officials unleashed a series of legal assaults on the financial industry, targeting actions they said helped trigger the housing market collapse and then attempted to take advantage of desperate homeowners left in its wake. The U.S. attorney's office in Manhattan accused Wells Fargo of defrauding a government-backed mortgage insurance program of hundreds of millions of dollars over more than a decade by improperly underwriting more than 100,000 home loans. At the same time, Atty.
October 18, 2011 |
Wall Street's message to Citigroup Inc. and Wells Fargo & Co.: Cost cutting and accounting gains don't substitute for growing your business. Investors sent shares of both banks sharply lower Monday after they reported third-quarter revenue — aside from special adjustments — dropped amid economic turbulence in the U.S. and Europe. Shares of Citi, the nation's third-largest lender, fell nearly 2%; Wells Fargo shares shed 8%. The results were announced on a bad day overall for financial stocks, which were hurt by comments from the German finance minister that there would be no speedy solution to the debt crisis in Europe.
July 20, 2011 |
Bank of America Corp. and Wells Fargo & Co., two of the nation's biggest home loan providers, reported vastly different second-quarter results as the banks continue to put the mortgage crisis behind them. Earnings at BofA were sideswiped after the nation's largest bank booked an $8.5-billion charge to settle legal claims related to its troubled mortgage division. The nation's largest bank reported that mortgage problems triggered a net loss of $8.8 billion and pushed revenue down 55% from the same period a year earlier to $13.2 billion.
August 2, 2007 |
Wells Fargo & Co. is seeking to limit its exposure to mortgages that typically don't require borrowers to fully document their incomes. The bank told mortgage brokers Tuesday that it was making "day-to-day decisions" whether to acquire from them so-called alt-A mortgages. Wells Fargo cited a growing reluctance of investors to buy such loans from the bank. Because they aren't subject to the usual income verification process, some alt-A borrowers are believed to have grossly exaggerated their pay.
October 15, 2008 |
Wells Fargo & Co. asked a federal judge to rule that a letter agreement between Wachovia Corp. and Citigroup Inc. was invalid and that it wouldn't be liable for damages in a lawsuit over its acquisition of Wachovia. Wells Fargo, which agreed to buy Wachovia after topping a Citigroup bid this month, filed a request for a declaratory judgment in Manhattan federal court as part of a new lawsuit against Citigroup. Wells Fargo said it was concerned that Citigroup might sue the San Francisco-based company for interfering with an aborted Wachovia-Citigroup merger.