Sarasota County files $40 million suit against Wells Fargo Bank – NMP Skip to main content

Sarasota County files $40 million suit against Wells Fargo Bank

Jun 28, 2010

A $40 million lawsuit has been filed by Florida's Sarasota County against Wells Fargo Bank NA, alleging improper investment advice with regard to the county’s securities lending portfolio prior to the market crash in 2008. Sarasota attorney Drew Clayton has been retained to prosecute the case on behalf of the county’s clerk of court and county comptroller, Karen Rushing. In her capacity as clerk of court and county comptroller, Rushing serves as the county’s top financial officer. According to the lawsuit, which was filed in the circuit court in Sarasota County, Wachovia Bank failed to follow the county’s conservative investment policies when it placed $40 million worth of Lehman Brothers notes and another $40 million of mortgage-related securities in the county’s portfolio. Lehman Brothers went bankrupt in September, 2008. The other two securities, issued by Altius III Funding Ltd. and Option One Mortgage lost a substantial amount of their value at that time as well. Wells Fargo has been named as a defendant because it acquired Wachovia Bank at the end of 2008 and became responsible for its obligations. Sarasota County is not the first governmental agency to file a suit of this nature as a result of Wachovia’s investment advice. A similar lawsuit was filed by the Charlotte-Mecklenburg Hospital Authority in North Carolina state court in December, 2008. For more information, visit www.claytonlawyers.com.
About the author
Published
Jun 28, 2010
Congress Weighs New Roadmap To End Fannie, Freddie Conservatorship

Rep. Scott Fitzgerald's three-bill housing package would establish a statutory framework for releasing the GSEs while expanding construction lending and easing some TRID compliance requirements

CHLA Backs Bank Capital Proposal, Questions Impact On Mortgage Lending

Trade group supports lower mortgage risk weights but says broader market forces — not capital rules — drove banks' retreat from the market

Senate Passes 21st Century ROAD To Housing Act In 85-5 Vote

Sweeping housing package heads back to House after Senate clears final version with broad bipartisan support

MISMO Updates Business Glossary To Support AI, eMortgages

New definitions covering eHELOCs, remote online notarization, valuation modernization, and compliance initiatives aim to improve consistency

Underwriters Don’t Slow Down Loans. They Eliminate Uncertainty.

ndustry’s biggest bottleneck is not underwriting itself — it is the uncertainty that reaches underwriting too late in the process. When validation happens upstream, speed follows naturally.

MISMO Launches AI Governance Framework For Mortgage Lenders

New FRAME toolkit gives lenders, servicers, and technology providers a roadmap for managing AI risk while supporting innovation