Wells Fargo & Co. 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. The terms weren't disclosed.
The trial would have been the third for San Francisco-based 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.
The bank lost a $30.1 million jury verdict in 2010 then won a trial over an $8.2 million claim last year.
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Frank scheduled a June 5 hearing at which the parties will present a detailed settlement proposal to him for preliminary approval.
The case is City of Farmington Hills Employees Retirement System v. Wells Fargo Bank NA, 10-cv-04372, U.S. District Court, District of Minnesota (St. Paul).
Comings and Goings
Former CFTC Commissioner Bart Chilton will join DLA Piper today as a senior policy adviser in Washington, the law firm said in e-mailed statement.
Chilton left the Commodity Futures Trading Commission last month after almost seven years of pushing for limits on oil and natural gas speculation and curbs on high-frequency trading.
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