Wells Fargo Can't Duck Blue Cross' Securities Lending Suit

Law360, New York (April 19, 2012, 3:23 PM EDT) -- Well Fargo Bank NA failed Wednesday to derail claims by Blue Cross and Blue Shield of Minnesota and other institutional investors that it recklessly managed their money in its securities lending program, with a federal judge saying the allegations were sufficiently specific and wouldn’t be dismissed.

Eight organizations say they directed the bank to steer their dollars into conservative areas but that it instead wagered on risky and highly illiquid securities, such as subprime mortgage-backed assets, leading to major losses.

Wells Fargo moved to dismiss the...
To view the full article, register now.