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Wells Fargo sued for million dollar mortgage fraud

The US government has filed a lawsuit against Wells Fargo bank for mortgage fraud.

The suit alleges that the bank lied about the quality of mortgages it handled leading to huge losses for the government when the loans went bad.

It is seeking damages for hundreds of millions of dollars in insurance claims already paid to Wells Fargo by the Federal Housing Administration (FHA).

Wells Fargo has denied the allegations.

Samira Hussain reports from New York.

  • 10 Oct 2012