New York Attorney General Criticizes Mortgage-Backed Securities Activities of Credit Suisse and Wells Fargo

by InvestorLawyers on December 11, 2012

in Arbitration,Credit Suisse,New York

Securities arbitration lawyers continue to investigate claims on behalf of investors who suffered significant losses during the 2008 market crash. In many cases, large investment banks allegedly deceived investors as to the risks of complex investments, including mortgage-backed securities, causing devastating losses.

Have Credit Suisse and Wells Fargo Paid their Dues? Many Don’t Think So

Currently, Credit Suisse Securities and affiliates are being sued by the state of New York based on claims that the firm misled investors about the evaluation of residential mortgage-backed securities.

“We need real accountability for the illegal and deceptive conduct in the creation of the housing bubble in order to bring justice for New York’s homeowners and investors,” says Eric Schneiderman, the state’s attorney general.

However, in these cases brought by governments and other regulators, investment fraud lawyers note that the focus is often on punishing the investment banks, not acquiring restitution for the individual investor.

In a settlement earlier this year, Wells Fargo agreed to pay $6.58 million in response to allegations that it did not adequately inform investors of mortgage securities risks. However, some securities arbitration lawyers say many Wells Fargo investors have still not been fully compensated for fraud losses. While Wells Fargo has agreed to pay $6.58 million to settle the charges, a meager $81,571 of that amount will go to restitution, plus interest. The rest, $6.5 million, will go toward a civil fine. According to the Securities and Exchange Commission, Wells Fargo Brokerage Services, based in Minneapolis, sold the high-risk mortgage securities improperly in 2007. Now, the firm is based in Charlotte, N.C., and is called Wells Fargo Securities.

A task force has been established by President Barack Obama, the goal of which is to investigate misconduct in the sales and pooling of securities.

“Our investigations and legal actions demonstrate that there must be one set of rules for all — no matter how big or powerful the institution may be — and that those rules will be enforced vigorously,” Schneiderman adds.

If you purchased mortgage-related securities from Wells Fargo, Credit Suisse or another large investment bank, you may be able to recover losses sustained in the 2008 financial crisis. To find out more about your legal rights and options, contact an investment fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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