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Wells Fargo settles SEC charges
A unit of Wells Fargo & Co settled civil charges yesterday alleging that Wachovia violated federal securities laws when it sold mortgage-backed securities to investors in the lead-up to the housing crisis. The Securities and Exchange Commission said that Wells Fargo Securities will pay $11m (£6.8m) in disgorgement and penalties to settle the administrative charges against Wachovia Capital Markets, a unit of Wachovia, acquired by Wells Fargo in late 2008. The SEC said Wachovia had violated the law in two different ways. In one instance, it sold overpriced collateralised debt obligations, or CDOs, to the Zuni Indian Tribe and another individual investor.