Wells Fargo Disputes State of California's Claims
San Francisco — April 23, 2009
Wells Fargo & Company (NYSE: WFC) said today it disputes the claims made by the California State Attorney General’s office against several of the Company’s broker-dealer affiliates regarding its participation in the auction rate securities (ARS) market.
“We fully understand and deeply regret the effects this prolonged liquidity crisis has had on our clients. Wells Fargo could not have predicted these extraordinary circumstances, and even with the benefit of hindsight is not responsible for them,” said Charles W. Daggs, CEO of Wells Fargo Investments, LLC.
“In April 2008, Wells Fargo led the industry in helping clients affected by the crisis by voluntarily providing significant liquidity to clients holding ARPs. Since that time, and despite the unprecedented nature and length of liquidity problems in the market, these clients have had access to 90 percent of the par value of their ARP holdings through non-recourse loans at favorable rates. We are not aware of any other similarly situated company that voluntarily provided a comparable loan program or took action on behalf of their clients before Wells Fargo implemented its loan program. We also have worked individually with clients who have special needs, and will continue to do so,” said Daggs.
Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,400 stores, over 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally. (As of 4/22/09)