Wells Fargo reaches settlement in Wachovia lawsuit

Forbes recently reported that Wells Fargo reached a settlement with investors in its Wachovia-related lawsuit. Investors, who claimed Wachovia misled them into purchasing sour mortgages, will receive $590 million from Wells Fargo and $37 million from KPMG.

Wells Fargo purchased Wachovia in 2008 when the government forced it to be sold before it collapsed. In its Pick-A-Pay loan portfolio, Wachovia had sold 30 bonds and preferred securities. Investors claim the risks associated with the portfolio were not accurately captured when presented for purchase, the news source reported.

Apart from reaching the settlement, Wells Fargo has reported strong numbers in terms of mortgage rates. According to Headline News, earlier this week the bank reported interest on a 30-year fixed-rate loan at 4.37 percent and interest on a 15-year fixed-rate loan at 3.5 percent. Refinancing rates at Wells Fargo remain stable, with 30 year refinancing at 4.5 percent and a 15 year refinancing at 3.6 percent.

Virginia Business reported Wells Fargo celebrated its conversion of Wachovia branches in Virgina on Tuesday with a parade in downtown Richmond. Nearly 300 branches of Wachovia were switched to the Wells Fargo system throughout Virginia in the state-by-state changeover process that the bank has been performing since it acquired Wachovia. The parade included an appearance by the Wells Fargo stagecoach adorned with the company logo.  

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