Wells Fargo settled a lawsuit over claims it mismanaged institutional investors’ collateral received as part of its securities lending program, lawyers for both sides told a judge as a trial was close to starting.
Bloomberg reports that three union retirement plans sued the lender in 2010. Jury selection was scheduled to start today in St. Paul, Minnesota, when the attorneys instead announced publicly before U.S. District Judge Donovan Frank that they’d reached an accord. The terms weren’t disclosed.
The trial would have been the third for Wells Fargo over its program of temporarily lending an institutional investor’s holdings to a third party in exchange for collateral that the bank invests with the objective of producing a profit for its client.
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