Public Employees Retirement Association recovers $50M in settlement with Wells Fargo
A major public employees retirement fund has recaptured $50 million lost in bad investments at the outset of the recession.
Wayne Probst, executive director of the New Mexico Public Employees Retirement Association, announced Thursday that Wells Fargo Bank has agreed to settle a lawsuit filed five years ago.
“This substantial settlement is for the benefit of PERA members and retirees,” the fund’s executive director, Wayne Probst, said in a news release. “The settlement proceeds will go directly to the retirement fund where they will be invested on behalf of our members.”
The retirement association in October 2010 filed a lawsuit alleging that the former Wachovia Bank and it subsidiaries breached its fiduciary duties, causing the fund $90 million in losses in 2008 by investing in “structured investment vehicles” from SIGMA Finance Inc. and Victoria Finance.
Read more: http://www.santafenewmexican.com/news/local_news/pera-recovers-m-in-settlement-with-wells-fargo/article_d38e4fb6-03dc-5456-9168-5221fbf3b5e6.html
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