Wells Fargo to pay $6.5 Million to SEC
Will settle allegations of selling risky mortgage-backed products to non-profits, municipalities.
Wells Fargo & Co will pay more than $6.5 million to settle civil charges alleging it sold complex mortgage-backed instruments to municipalities and non-profits during the financial crisis without fully disclosing the risks.
The case marks the latest effort by the Securities and Exchange Commission to hold banks accountable for their actions during the crisis.
The SEC said that Wells Fargo's brokerage unit based in Minneapolis agreed to settle the case without admitting or denying the charges. It will pay a $6.5 million penalty, plus $65,000 in disgorgement and more than $16,000 in prejudgment interest.