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Report: Wells Fargo settles with Residential Capital over bad loans

Wells Fargo & Co. and the trust liquidating Residential Capital LLC struck a deal over mortgages the bank sold the now-bankrupt subprime lender, The Wall Street Journal reported, citing "people familiar with the matter."

The settlement relates to real estate loans that Residential Capital claimed helped push the firm into bankruptcy. The details of the settlement were not disclosed.

The trust's recoveries totaled $237 million as of Nov. 9. The Journal reported that through settlements, the trust has recovered almost $400 million, citing "people familiar with the matter."

A Wells Fargo spokeswoman declined to comment on the news, the article added.