Credit Unions Sue Another Bank For Tainted Mortgage Securities

The National Credit Union Administration this week has added Wells Fargo to Bank of America and U.S. Bancorp as targets of lawsuits claiming the banks did not properly protect investors while acting as trustee over securities backed by home loans that defaulted and helped usher in the 2008 financial crisis. Wells Fargo failed to review loan files for irregularities and ignored warning signs, the lawsuit claims, even after there was ample evidence that the trusts were “riddled with defective loans.”