In October 2008, San Francisco-based Wells Fargo & Company purchased Wachovia Corporation for $12.7 billion after the bank teetered on the verge of financial collapse. With the purchase, Wells Fargo inherited the subprime-laden mortgage portfolio of Golden West, which Wachovia previously acquired in 2006.
Wachovia also is associated with investor complaints and lawsuits in connection to the Evergreen Ultra Short Opportunities Fund. (Wachovia is the parent company of Evergreen Investments.) Investors in the Evergreen Ultra Short Opportunities Fund, which fell more than 30% in value in 2008, sustained substantial losses because of the fund's investments in subprime mortgages.
The fund itself initially was promoted as a safe, conservative investment, a bond fund designed to generate income without substantial fluctuations in share value. Instead, more than half of the fund's assets were invested in high risk, toxic collateralized debt obligations (CDOs) and other highly speculative securities. Many investors contend they were never told about the fund's investments in these products and that the managers of the Evergreen Ultra Short Opportunities Fund made false and misleading statements about the extent of the fund's risks.
If you are an individual or institutional investor and have concerns or questions about your Wells Fargo or Wachovia-related investments, contact Mark Maddox. We can evaluate your situation to determine if you have a claim.