Wells Fargo Has Been Ignoring SEC Subpoenas Since September. Think You Could Get Away With It?

A Wells Fargo executive explains to the SEC that his company didn't do anything wrong! I had to laugh when I read this, because bill collectors from Wells Fargo keep hounding me over a few bucks I owe from when I closed my account and moved it

[oldembed src="http://www.youtube.com/embed/JFvujknrBuE" width="425" height="300" resize="1" fid="21"]
A Wells Fargo executive explains to the SEC that his company didn't do anything wrong!

I had to laugh when I read this, because bill collectors from Wells Fargo keep hounding me over a few bucks I owe from when I closed my account and moved it to a credit union. (I plan to give them the money, I just haven't gotten around to it yet.)

"Don't you have any sense of honor about your just debts?" the last bill collector said.

"Are you serious?" I said after I stopped laughing. "Do you know who you're working for?"

The next time he calls, I'm going to tell him I'll write him a check just as soon as Wells Fargo complies with their SEC subpoenas!

(Reuters) - U.S. securities regulators accused Wells Fargo & Co on Friday of repeatedly ignoring its subpoenas for documents in connection with a probe into the bank's $60 billion sale of mortgage-backed securities.

The Securities and Exchange Commission's filing in a San Francisco federal court seeks to compel the fourth largest U.S. bank to hand over documents. The SEC said it has issued several subpoenas since September.

A Wells Fargo spokeswoman called the SEC's action "inappropriate" and pledged the bank would "vigorously defend itself in court" against the SEC action.

"Wells Fargo has extensively cooperated in the commission's investigation and believed it had an understanding with the SEC staff with regard to the outstanding document requests; the filing of this action violates that understanding," said Wells Fargo spokeswoman Mary Eshet.

The SEC said on Friday it is looking into whether Wells Fargo made "material misrepresentations or omitted material facts" in offerings it made to investors from September 2006 through early 2008, a period that included the beginnings of the financial crisis.

The SEC charges that a due diligence review of a sampling of the securitized loans was done, and some of those loans would be dropped because they failed to meet the bank's underwriting standards.

But the regulator said it "does not appear that Wells Fargo took any steps to address similar deficiencies in the remainder of the loans in the pool, which were securitized and sold to investors."

Eshet said that the SEC had inaccurately described its conduct with regard to residential mortgage backed securities and that no enforcement action was warranted.

About Susie Madrak

Comments

We welcome relevant, respectful comments. Please refer to our Terms of Service for information on our posting policy.