Wells Fargo will pay more than $6.5 million to settle claims with the Securities and Exchange Commission (SEC) that its brokerage firm and a former executive did not properly disclose risks related to MBS investments.

The agency found that Wells Fargo improperly sold ABCP backed by high-risk MBS and CDOs to municipalities, nonprofits and others but did not obtain enough information about these investments, the SEC said Tuesday. Instead, Wells Fargo relied mostly on their credit ratings, the SEC said.

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