Client_News

San Francisco Business Times:

European bank LBBW Luxemburg S.A. said it sued Wells Fargo, alleging $1.5 billion in securities fraud involving residential mortgage-backed securities.

The suit, filed Sept. 28 in federal court in New York, charges that Wells Fargo Securities, formerly Wachovia Capital Markets,sold $1.5 billion in highly rated securities to LBBW and others even though Wells (NYSE: WFC) had determined that the underlying mortgages....

....

"Wachovia tried to squeeze every penny out of a deal they knew was bad," said David Warden, one of the AZA attorneys representing LBBW. "Their greed was the very act that allowed investors to realize the misrepresentations Wachovia made to close a deal that had already gone sour."

AZA attorney David Warden in San Francisco Business Times article

http://www.bizjournals.com/sanfrancisco/news/2012/10/02/wells-fargo-wachovia-litigation.html

© 2012 American City Business Journals.