The Securities and Exchange Commission (SEC) announced Tuesday that Wells Fargo Securities agreed to settle charges that Wachovia Capital Markets engaged in misconduct in the sale of two CDOs tied to the performance of RMBS as the U.S. housing market was beginning to show signs of distress in late 2006 and early 2007.

Wells Fargo Securities, renamed as such after Wells Fargo & Co. bought Wachovia Corp. in 2008, agreed to settle the SEC’s charges by paying more than $11 million in disgorgement and penalties.

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