5. Kendall, Wells Settles Wachovia Bid-Rig Case, 2011

5. Kendall, Wells Settles Wachovia Bid-Rig Case, 2011 -...

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Wells Settles Wachovia Bid-Rig Case DECEMBER 9, 2011 By BRENT KENDALL WASHINGTON—Wells Fargo & Co. has agreed to pay $148 million to settle charges that its Wachovia Bank unit participated in a conspiracy that rigged bids on investment contracts for municipalities, federal and state authorities said Thursday. The agreement is the latest enforcement action in a long-running U.S. investigation into the municipal-securities market. Wachovia is the fourth bank to reach a settlement. The Justice Department, Securities and Exchange Commission and state authorities said former Wachovia employees, working in conjunction with others, rigged the bidding process for government entities that were seeking to invest money they raised through municipal bonds. Governments typically need to invest bond proceeds in the short term until they are ready to spend the money on public projects. The SEC said Wachovia rigged at least 58 transactions in 25 states and Puerto Rico. Wachovia's conduct took place from at least 1997 to 2005, the agency said, before it was acquired by Wells
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This note was uploaded on 02/19/2012 for the course MARKETING 3336 taught by Professor Wyatt during the Spring '10 term at University of Houston.

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5. Kendall, Wells Settles Wachovia Bid-Rig Case, 2011 -...

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