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Wells Fargo Gives Up Mortgage Records
June 4, 2012
[ by Melanie Gretchen ]
Wells Fargo & Co. finally gave into the SEC's demands for information related to its MBS (mortgage-backed securities) business, according to a person familiar with the matter. Hundreds of e-mails and other documents provided by the 4th-biggest U.S. bank put to an end the legal battle between the SEC - which in March unsuccessfully filed an enforcement action in the U.S. District Court in San Francisco - and Wells Fargo - an attempt to force the bank to produce documents related to its residential mortgage-backed securities business.
Uphill Battle. As it investigates Wall Street's packaging and selling of these securities, the SEC has issued more than 300 subpoenas or document requests to Wall Street firms and others as part of that investigation, officials said Thursday. To date, Wells Fargo has received 6 of the subpoenas which regulators hope will unlock data on the pools of loans underlying nearly $60 billion of securities that Wells Fargo sold to investors, from September 2006 through early 2008.
A spokesperson for Wells Fargo said the bank "continues to believe its disclosures in offering documents pertaining to residential mortgage-backed securities containing Wells Fargo mortgages were proper and appropriate."
For further details, go to [WSJ, 5/24/12].

