Wells under fire over legacy RMBS trust issues

Legal wrangling over crisis-era US RMBS took another turn this week, following trustee Wells Fargo’s decision to hold on to $94m of investor proceeds from $540m of called bonds to fund legal costs relating to RMBS lawsuits. The move has shocked the market and prompted Fitch Ratings to put $2.2bn of similar bonds on rating watch negative, writes David Bell.