(NEW YORK) — Regulators say that Wells Fargo & Co. should be forced to cooperate with an investigation into its sale of nearly $60 billion in residential mortgage-back securities after it failed to hand over documents demanded in U.S. subpoenas, Bloomberg Businessweek reports.
The Securities and Exchange Commission asked a federal judge on Friday to require the bank to submit documents it agreed to produce under subpoenas dating from September. The SEC is looking into possible fraud of the San Francisco-based company and noted that until now, the company has escaped accusations that most of its competitors have suffered since increasing mortgage defaults prompted record government bailouts of the financial system.
If the agency’s request is granted, Well Fargo would have 14 days to submit 1,365 emails and attachments it has withheld from the SEC. Wells Fargo responded by saying the subpoena enforcement action is “inappropriate and unwarranted,” and further stated that “the SEC staff has inaccurately described its conduct with regard to residential mortgage-back securities.”
Copyright 2012 ABC News Radio
Kathryn Vasel, CNN
Magdala Louissaint, KPVI