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Wells Fargo, Whistleblowers Reach 2008 Crisis Loan Settlement

May 5, 2020, 1:25 PM

Wells Fargo & Co. and false claims whistleblowers have reached a settlement to end the suit accusing the bank of misrepresenting its financial condition to get emergency bailout loans in the 2008 financial crisis, they told a New York federal court.

The government consents to the parties’ stipulation of dismissal, federal prosecutors told the U.S. District Court for the Eastern District of New York Monday.

Representatives for the parties didn’t immediately respond to a request for comment.

Whistleblowers Robert Kraus and Paul Bishop asserted that Wells Fargo improperly received low-rate loans from a Federal Reserve bank.

A district court dismissed ...

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