By Jef Feeley, Bloomberg News
Wells Fargo & Co. must face investor lawsuits filed by BlackRock Inc. and other money managers accusing the bank of failing to properly act as a trustee for risky residential mortgage-backed securities.
Investment funds, including Pacific Investment Management Co. and BlackRock, can press claims Wells Fargo officials violated agreements and engaged in conflicts of interests in their oversight of 53 trusts holding the securities, U.S. District Judge Katherine Polk Failla in Manhattan ruled Thursday.
The suits raise legitimate questions about whether Wells Fargo trustees knew about lenders’ “alleged breaches of the trusts’ governing agreements” and ...
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