Attorney General Paula T. Dow announced today a $58.75 million settlement between a multi-state task force and Wachovia Bank and its successor, Wells Fargo Bank.
The settlement is part of an ongoing national investigation of alleged anti-competitive and fraudulent conduct in the municipal bond derivatives industry. Wachovia will pay municipal bond issuers in New Jersey upwards of $2 million in restitution, according to preliminary estimates, according to Dow.
Nationwide, Wachovia has agreed to pay a total of $54.5 million in restitution to affected state agencies, municipalities, school districts and not-for-profit entities that entered into municipal derivative contracts with Wachovia between 1998 and 2004 and are eligible to participate in the settlement.
In addition, Wachovia has agreed to pay a $1.25 million civil penalty and $3 million for fees and costs of the investigation to the 26 settling states.