WASHINGTON Feb 12 A federal judge on Tuesday
denied Wells Fargo's attempt to beat back a
financial-crisis lawsuit by arguing it conflicted with an
District Judge Rosemary Collyer in Washington, who is
supervising the 2012 multi-bank $25 billion mortgage misconduct
settlement, said she did not agree with the bank's assessment of
But she declined to rule on the new Justice Department
lawsuit, which is seeking damages and penalties for more than 10
years of alleged misconduct related to government-insured
Federal Housing Administration loans, and left a federal court
in New York to determine whether the two conflict.
The fourth-largest U.S. bank had asked Collyer in November
to rule that the government violated the terms of the multi-bank
deal in filing a new case.
Wells Fargo said the earlier consent judgment "wiped the
slate clean" for the bank in terms of certain conduct related to
its FHA portfolio.
But on Tuesday, Collyer said the language in the settlement
"does not have the meaning ascribed to it by Wells Fargo," and
denied the bank's request for an order enforcing the settlement.
A spokesman for Wells Fargo had no immediate comment. A
spokeswoman for the U.S. Attorney's office in Manhattan, which
brought the lawsuit, did not immediately respond to a request