SEC Takes No Further Action Against Wells Fargo Over Portfolio Accounting

The Securities and Exchange Commission questioned how Wells Fargo & Co. valued and accounted for a portfolio of soured loans, but the agency concluded its review without further action, after the bank provided more information.

In a newly released exchange of letters between the SEC and the bank, the commission asked Wells Fargo in September about why the value at which it was carrying its “purchased-credit-impaired,” or PCI, mortgages was declining, as the cash the bank expected to realize from those loans was increasing relative to that value.

PCI mortgages are loans of deteriorating credit quality that Wells Fargo assumed when it bought Wachovia Corp. about eight years ago during the financial crisis.

Read on.

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