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Wells under fire over legacy RMBS trust issues

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Legal wrangling over crisis-era US RMBS took another turn this week, following trustee Wells Fargo's decision to hold onto $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 ratings watch negative.

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