Wells Fargo (WFC) agreed to pay $62.5 million to settle claims from a group of institutional investors that the bank wrongly advertised a risky securities lending program as safe, according to an article in Reuters.
The plaintiffs argued that the bank marketed its lending program as safe but instead invested their funds in risky products such as mortgage-backed securities, causing significant losses.
In settling the case, Wells Fargo continued to deny any wrongdoing, according to court papers.
