Wells Fargo & Co. (NYSE:WFC): Current price $35.08
Wells Fargo has been charged in a lawsuit brought by the German state-owned bank WestLB. Allegations include the mishandling the investments of a collateralized-debt obligations vehicle that was created by the plaintiff which was bailed out and dissolved subsequent to the 2008 financial crisis. A public agency in Germany, Erste Abwicklungsanstalt, formed to take over and wind up WestLB’s assets. House of Europe Funding I, a CDO issuer based in the Cayman Islands, filed a complaint Wednesday in a Manhattan federal court that accuses Wells Fargo, as trustee and collateral administrator, and Collineo Asset Management of “rampant mismanagement” and “flagrant disregard” by investing more of the funds raised by House of Europe Funding I in other CDOs than were permitted.
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