The settlement would end a 2008 suit that charges Wachovia misled investors in its bonds and preferred securities by understating losses associated with risky mortgages. Wells bought Wachovia that year.
San Francisco-based Wells Fargo is putting its name on the Charlotte-based Wachovia banks it has taken over on the East Coast.
California Attorney General Jerry Brown said Wells Fargo Bank N.A. has agreed to modify adjustable-rate loans made to nearly 15,000 Californians by lenders that it acquired.