SEC Files Lawsuit to Compel Compliance with Subpoenas Related to RMBS

On March 23, 2012, the SEC filed an administrative enforcement action against Wells Fargo & Co. in the Northern District of California seeking an order compelling Wells Fargo to comply with six subpoenas the agency issued to obtain information about the quality of RMBS that the bank sold. According to the SEC’s application, Wells Fargo has failed to respond adequately to the subpoenas, which seek documents regarding, among other things, the bank’s underwriting practices, the quality of the mortgage loans, compensation matters, and training materials. The SEC initiated the investigation in November 2010. Wells Fargo received a Wells notice from the SEC on February 24, 2012, following the issuance of the six subpoenas, and, according to the SEC, has refused to produce any documents since the Wells notice was issued. Application.