Wells Fargo to pay $125 million in mortgage suit (AP)

NEW YORK – Wells Fargo & Co. has agreed to pay $125 million to a group of pension funds and other investors to settle allegations the bank failed to warn investors of the risks the poorly-written mortgage backed securities.

The proposed settlement was filed Wednesday in a California federal court and represents lawsuits filed by the pension funds of Detroit, Alameda County, New Orleans, Guam, and other plaintiffs. The settlement is subject to court approval.

The mortgage-backed securities were sold by Wells Fargo in 2005 and 2006. The investors said in their complaint that in its bid to collect fees, the bank misstated and omitted details that show the securities were backed by poor quality mortgages sold to people without proper documentation. The bank denied any wrongdoing.

NBA faces $1 million fine for using Facebook or Twitter during lockout (Yahoo! News)

Contract negotiations enact tough new rules against social media leaks

Salary negotiations, salary caps, revenue sharing and just about every other negotiation has come to a standstill today between the NBA and its players. Since the expiration of the current collective bargaining agreement last night between the owners and players, the league has barred any interaction between them through Facebook or Twitter until a new contract is reached.

Should the owners communicate with the players via social media tools, the offender is not only facing a million dollar fine from the league, but the owner's eligibility to participate in draft picks for the new season could also be yanked. This could be devastating to a team that is trying to rebuild for a run at the national title.

The ban on Facebook is particularly tough, extending to coaches, managers and front office personnel. The Twitter blackout is a little more lax. Players can be followed on Twitter, but messages cannot be sent via the social service, nor the retweeting of their updates.

All of this is part of a bigger lockout strategy that puts an end to scouting, European preseason games and support for this summer's Olympic qualifying tournaments. If the two sides don't come to an agreement before the official start of the season, Twitter leaks may soon be the least of their problems.

(Source)

Post by Dan O'Halloran

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