(Adds Wells Fargo comment, paragraph 3)
By Lawrence Hurley
WASHINGTON, June 10 A U.S. appeals court on
Tuesday rejected Wells Fargo & Co's attempt to avoid
litigation over government allegations of misconduct related to
home mortgage loans issued by the Federal Housing
A unanimous three-judge panel of the U.S. Court of Appeals
for the District of Columbia Circuit said the bank's
participation in a $25 billion settlement with the government
over foreclosure abuses did not address the claims in the
separate civil case brought by the U.S. Attorney's office in
Manhattan concerning the origination and underwriting of loans.
"We are disappointed with the appellate court's ruling,"
Wells Fargo spokesman Ancel Martinez said in a statement. "We
look forward to presenting our case in support of our
longstanding record of responsible lending."
Wells Fargo had asked a federal district court in
Washington, D.C., to enforce the 2012 settlement, which had been
negotiated by the Justice Department. The bank said the claims
made in the more recent New York lawsuit should be barred in
light of the settlement. The appeals court on Tuesday upheld a
district judge's decision to deny the bank's motion.
The appeals court, in Tuesday's unsigned opinion, said the
settlement language clearly allowed the separate claims to be
The case is United States v. Wells Fargo, U.S. Court of
Appeals for the District of Columbia Circuit, No. 13-5112.
(Additional reporting by Aruna Viswanatha; Editing by Howard
Goller and Grant McCool)