Wells Fargo Unsettles Mortgage Bond Market by Holding Back Funds

Categorized | STOP FORECLOSURE FRAUD

Wells Fargo Unsettles Mortgage Bond Market by Holding Back Funds

Posted on05 July 2017.

Trustee kept $90 million owed to investors in 20 securities
Money held to cover legal costs related to financial crisis

Bloomberg-

Wells Fargo & Co. surprised investors this week by withholding more than $90 million due to buyers of pre-crisis residential mortgage-backed securities.

The bank said it invoked its right as trustee to hold back funds to cover legal costs. The 20 transactions had a principal balance of $540 million and are among more than 2,000 deals involved in a lawsuit brought by bondholders including BlackRock Inc. and Pacific Investment Management Co. in 2014 to recover losses from the financial crisis.

It’s only the second time that proceeds from bonds involved in that litigation have been withheld from investors. Wells Fargo’s move caused losses for some bondholders and sent others scrambling to assess risks for similar deals in a market still recovering from the bursting of the housing bubble in 2008.

[BLOOMBERG]

Comments

comments

This post was written by:

admin - who has written 11558 posts on FORECLOSURE FRAUD.

CONTROL FRAUD | ‘If you don’t look; you don’t find, Wherever you look; you will find’ -William Black

Contact the author

Click here to cancel reply.

Categorized | STOP FORECLOSURE FRAUD