Bloomberg News

Wells Fargo One of 11 Firms Subpoenaed by Justice Department

January 31, 2012

Jan. 30 (Bloomberg) -- Wells Fargo & Co., the biggest U.S. mortgage lender, was among at least 11 firms to receive a subpoena from the Justice Department as President Barack Obama formed a unit to investigate wrongdoing in the housing market.

Tom Goyda, a spokesman for the San Francisco-based lender, confirmed the bank’s receipt of the subpoena and declined to comment further. Wells Fargo is the second-largest U.S. mortgage servicer, according to Inside Mortgage Finance, an industry publication.

Obama announced last week that the new unit will investigate misconduct in the bundling of mortgage loans into securities. U.S. Attorney General Eric Holder said on Jan. 27 that the Justice Department had subpoenaed 11 financial institutions in related investigations.

The unit will “streamline” and “strengthen” current efforts to investigate fraud in residential mortgage-backed securities, Holder said at a news conference in Washington.

--Editors: Dan Reichl, Russell Ward

To contact the reporter on this story: Dakin Campbell in San Francisco at dcampbell27@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


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