CCTV.com - CNTV English - CCTV News

U.S. securities trading regulator charges Wells Fargo with improper investments sales

08-15-2012 08:25 BJT

WASHINGTON, Aug. 14 (Xinhua) -- U.S. Securities and Exchange Commission (SEC) Tuesday charged an brokerage arm of Wells Fargo, one of the leading banks in the States, for selling investments tied to mortgage-backed securities without fully disclosing the risks to investors.

The SEC alleged that Wells Fargo Brokerage Services (now Wells Fargo Securities) improperly sold asset-backed commercial paper ( ABCP) structured with high-risk, mortgage-backed securities and collateralized debt obligations (CDOs) to investors from January to August 2007, but the company failed to disclose the risks and complexity of these products.

The regulator said that municipalities and other non-profit institutions were harmed by the misconduct of the Wells Fargo brokerage subsidiary, but failed to elaborate.

Without admitting or denying the findings, Wells Fargo agreed to pay more than 6.5 million U.S. dollars to settle the case, adding that it had taken remedial measures since 2007 to ensure relevant information would be fully disclosed to investors, according to sources with the SEC.

 

 

Editor:James |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program