Simon v. Wells Fargo Bank etc. CA4/12
This case arises out of a set of complex commercial real estate loans totaling $4.6 million that were made by Wells Fargo, National Association (Wells Fargo), to Frederick J. Simon, as trustee of the Frederick J. Simon Revocable Trust (Simon), to provide partial funding for the purchase of a shopping center in Placerville, California. The initial two commercial agreements were made in January 2007 and shared a 6.4 percent fixed interest rate. In March 2007, Wells Fargo offered Simon a better interest rate if the parties entered into “swap transactions” that had the net effect of converting Simon’s interest obligations into a rate of 1.03 percent above LIBOR. Because LIBOR was 5.25 percent at the time, the cumulative product of the loan agreements was a 6.28 percent fixed interest rate.
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