Wells Fargo has agreed to pay US$2.09 billion for packaging up toxic loans originating from the bank's "courageous underwriting" campaign in the run up to the GFC, reports the FT. It is the latest in a series of penalties imposed by US authorities on some of the world's biggest banks for behaviour seen as contributing to the financial crisis. In Wells Fargo's case, this was exhorting and incentivising employees to approve loans and ramp up its market share by being aggressive and "courageous" in approving loans that may not meet underwriting standards. The Department of Justice said between 2005 and 2007 Wells Fargo sold at least 73,500 loans on which it had not verified the borrowers' income. Nearly half have since defaulted.