Wells Fargo suggests U.S. government may be retaliating

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Wells Fargo said on Monday that a U.S. government request to add one of its executives as a defendant in a fraud case may be in retaliation for the bank's decision to cut off settlement talks.

Reuters reports that in a motion filed in New York federal court opposing the Justice Department's request to add executive Kurt Lofrano as a defendant, Wells Fargo said it told the government it would no longer engage in settlement negotiations on 29th October after months of discussions.

Three days later, the government for the first time said it would seek to add an unnamed executive, later revealed to be Lofrano, to its year-old lawsuit accusing the bank of fraud during the lead-up to the financial meltdown.

'In the absence of any other explanation for the lengthy delay, this intervening event - within days of the notice - raises questions about whether the United States acted in bad faith, in retaliation for Wells Fargo's message', the bank's lawyers said in court papers.

The bank questioned why the Justice Department waited a year before deciding to pursue claims against Lofrano, who has joined a very short list of individual executives to be sued by the government over actions that contributed to the financial crisis.

To access the complete Reuters article hit the link below:

Wells Fargo: US. targeting exec as defendant may be retaliation

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