With our free press under threat and federal funding for public media gone, your support matters more than ever. Help keep the LAist newsroom strong, become a monthly member or increase your support today.
Attorney general sues Wells Fargo for defrauding investors
California Attorney General Jerry Brown today sued three subsidiaries of Wells Fargo Bank for allegedly defrauding California investors. KPCC’s Julie Small reports.
California Attorney General Jerry Brown today sued three subsidiaries of Wells Fargo Bank for allegedly defrauding California investors. KPCC’s Julie Small reports.
Julie Small: Brown says the subsidiaries encouraged investors to buy “auction rate securities” that pay a higher interest rate than most savings accounts.
Attorney General Jerry Brown: These instruments were sold to people under the idea that it’s just like cash and you get your money back in eight days. That turned out not to be true.
Sponsor
Small: The market for auction rate securities froze a year ago. No one could cash out – and the attorney general’s phone started ringing.
Brown: We got a lot of complaints. We know there’s over 2,000 people that bought these securities. They’re mad as hell and want their money back. And we believe under the laws of California, they have that right, and we’re going to court to make sure that right is vindicated.
Small: Brown wants Wells Fargo to return a billion-and-a-half dollars to investors. Wells Fargo says it’s not responsible for the “extraordinary circumstances” that collapsed the auction rate securities market.
At LAist, we believe in journalism without censorship and the right of a free press to speak truth to those in power. Our hard-hitting watchdog reporting on local government, climate, and the ongoing housing and homelessness crisis is trustworthy, independent and freely accessible to everyone thanks to the support of readers like you.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
Senior Vice President News, Editor in Chief
