Wells Fargo has agreed to pay $2.09 billion to settle with the Justice Department. The Justice Department was allegeding that Wells Fargo misrepresented the quality of loans used in residential mortgage-backed securities. This settlement is separate to the $142 million settlement for opening unauthorized accounts and $185 million in fines for those unauthorized accounts. Acting Associate Attorney General Jesse Panuccio stated that:
“This settlement holds Wells Fargo accountable for actions that contributed to the financial crisis,”
and
“It sends a strong message that the Department is committed to protecting the nation’s economy and financial markets against fraud.”
