Facebook logo
Facebook logo
Facebook logo
Facebook logo

Top Securities Lending news picks

Securities Lending Times home | Industry news | Wells Fargo wins Blue Cross suit ← You are here

Latest News
Triad partners with Wedbush for clearing
08 February 2016 | New York
Triad Securities has added Wedbush Securities to its roster of clearers, further boosting the firm's prime brokerage services... Read more

Broadridge acquires Anetics
05 February 2016 | New York
Broadridge has acquired Massachusetts-based tech firm Anetics, adding to its arsenal of securities finance tools... Read more

For more news visit our news section

Industry recruitment
Quality Assurance Automation Engineer Role
Recruiter: EquiLend
Location: New York
Find out more

Java Developer Role:
Recruiter: EquiLend
Location: New York
Find out more

For more jobs visit our recruitment section
Securities Lending Times
View the latest issues online now

Sister publications
Asset Servicing Times

Captive Insurance Times

Real Estate Investment Times

Media pack [download]
Ad specs [download]
Latest features
Business as beneficial
Feature: With interest rates finally rising in the US, experts discuss what the future has in store for beneficial owners and their agent lenders Read more

Country profile: France’s institutional investors establishing discretionary securities lending programmes are benefitting from increased levels of control and flexibility Read more

Maria Langouche :: National Settlement Depository
Interview: Russia is making strides in repo, collateral management and securities lending. Maria Langouche of the country’s National Settlement Depository explains Read more

For more features visit our features section
Industry news
More industry news
Wells Fargo wins Blue Cross suit
07 April 2014 | Minnesota | Reporter: Georgina Lavers
Wells Fargo has won a second suit levelled against it by the health plan provider Blue Cross.

On 24 March, a jury returned a verdict in which it found that the bank did not breach a fiduciary duty to any of the six non-ERISA (Employee Retirement Income Security Act) plaintiffs.

Wells Fargo did not “provide false information or use a deceptive practice in the course of selling the securities lending programme” to each of the six non-ERISA plaintiffs, and it also did not “knowingly misrepresent, directly or indirectly, the true quality of the securities lending programme or its collateral investments in connection with the sale of the securities lending programme to the plaintiffs, the jury found.

The outcome was similar in August of last year, when ERISA plaintiffs from Blue Cross and Blue Shield of Minnesota, which offers health plans for individuals and businesses, alleged that their investments were grossly mismanaged in a securities lending programme.

Blue Cross Blue Shield’s claim stated that: securities lending was offered as a conservative option for investors; and the bank also represented that the collateral would be safely invested in high-grade money market instruments. Neither of these conditions were satisfied, alleged the firms.

But the jury has cleared Wells Fargo of any liability. A statement from the company at the time said: “The verdict validates that Wells Fargo was focused at all times on serving our clients’ interests and that Wells Fargo worked very hard and responsibly to achieve the best results for all participants in the securities lending programme during extremely difficult economic conditions.”

“Our conservative approach was effective, as the plaintiffs in Wells Fargo securities lending program had minimal losses averaging approximately three percent at the same time that the markets were down up to 50 percent during the height of the financial crisis.”

“The jury’s verdict supports our company’s firm belief that the investments made on behalf of our clients were in accordance with investment guidelines and were prudent and suitable.”

Broadridge acquires Anetics
Broadridge has acquired Massachusetts-based tech firm Anetics, adding to its arsenal of securities f Read more

IMN: CCPs not quite central to sec lending plans
A conference audience poll found that 63.9 percent of attendees believe that central counterparties Read more

IMN: cyber concerns about regulators
Unanswered questions about the security of reported data stored by regional regulators should be a m Read more

IMN: keeping securities lending fees-able
There was a significant swing in the percentage of US and Canadian transactions using non-cash colla Read more

Overstock and Merrill Lynch settle for $20 million
Overstock.com has ended its long legal battle with a group of broker-dealers after securing a $20 mi Read more

Securities Lending Times site map


Issue archive
Back issues online
Events and Training
Upcoming events

Upcoming training

Company info
About us

Contact us

Copyright (C) 2016 Black Knight Media Ltd. All rights reserved. No reproduction without prior authorization