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Court rules against Wells Fargo

Published on NewsOK Modified: June 10, 2014 at 2:38 pm •  Published: June 10, 2014
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WASHINGTON (AP) — A federal appeals court says Wells Fargo cannot avoid new allegations of misconduct stemming from the mortgage crisis even though the bank has already paid $5 billion in a national settlement between the government and financial institutions.

After the 2012 settlement, the government filed a wide-ranging complaint against Wells Fargo in federal court in New York alleging further wrongdoing, this time on the bank's origination and underwriting of thousands of individual, federally insured mortgages.

Wells Fargo said its prior settlement broadly released the bank from liability for any company-wide conduct having to do with false annual certifications to the government.

In a 3-0 ruling, the U.S. Court of Appeals for the District of Columbia Circuit says the settlement was much narrower.