Reuters: Wells Fargo to Face Litigation on Defective Mortgages



Reuters reported that a federal judge said Wells Fargo will have to face litigation for its involvement with one of the major causes of the 2008 financial crisis and be held responsible for claimed investor losses that resulted from alleged failures in overseeing residential mortgage-backed securities.

According to Reuters, the plaintiffs in these cases are considering the pursuit of breach of contract and conflict of interest claims related to 53 trusts.

Reuters noted that U.S. District Judge Katherine Polk Failla’s 80-page decisions encapsulated five lawsuits and is one of the last pieces of U.S. litigation that aims at holding banks accountable for the risky mortgage securities that were a primary cause of the 2008 financial crisis.

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