'Risky' Wells Fargo Investments Cost Insurer $40M: Suit

Law360, New York (October 11, 2011, 5:20 PM EDT) -- Minnesota Life Insurance Co. accused Wells Fargo Bank NA on Tuesday of costing it $40 million by making lousy investments in companies that eventually collapsed.

In a complaint filed in Minnesota federal court, the insurer and its parent Securian Financial Group Inc. allege Wells Fargo began making risky investments with collateral from Minnesota Life's investment company, Advantus Series Fund Inc., while promising it was only making safe investments.

"At some point, Wells Fargo began ignoring its promises," the complaint said. "In order to increase its own...
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