Feb. 3 (Bloomberg) -- Wells Fargo & Co., one of the nine banks to receive funds in the first round of the Treasury’s bailout, canceled a four-day corporate event in Las Vegas as financial firms cut perks amid criticism from lawmakers.

“We had scaled back the mortgage event, but in light of the current environment, we have now decided to cancel,” the San Francisco-based company said today in a statement. The lender said it had already abandoned plans for other functions.

Wells Fargo’s event for the home-lending unit was scheduled to take place at Wynn Resort Ltd.’s hotels. An insurance-team meeting for 40 people was planned at the Mandalay Bay Resort & Casino starting Feb. 25, according to the Las Vegas Convention and Visitors Authority’s Web site. The Associated Press reported on the events earlier today.

Lawmakers and regulators have disparaged financial companies for perks and bonuses offered to employees since the U.S. government’s $700 billion rescue plan was announced in October. American International Group Inc., now majority-owned by the U.S. government, canceled off-site conferences after being castigated for hosting a $440,000 meeting following its bailout. SunTrust Banks Inc., an Atlanta-based lender that sold a $4.9 billion stake to the U.S., eliminated an annual sales conference and award trips for top producers.

Last week, Wells Fargo reported a $2.55 billion fourth- quarter loss after acquiring Wachovia Corp. and its portfolio of troubled mortgages. Wells Fargo received $25 billion from the U.S. government in October as part of the Troubled Asset Relief Program designed to spur lending and save the financial system.

Andrew Cuomo

“The question here is whether Wells Fargo is spending taxpayer money to bankroll Las Vegas junkets,” New York Attorney General Andrew Cuomo said in an e-mailed statement. “That is an answer the American people deserve to know because this is their money.”

Wells Fargo has bolstered lending as its top competitors scaled back. The company added $9.7 billion in loans in the fourth quarter, compared with a combined $86.4 billion decline at JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. Wells Fargo said last week that it doesn’t need additional government capital after Citigroup and Bank of America required a second round of bailout funds.

“We’ve used the government’s investment to lend to creditworthy customers and to help homeowners avoid foreclosures,” Wells Fargo said today.

Some smaller banks have opted not to participate in TARP. Community Bank System Inc. in Dewitt, New York, and Tulsa, Oklahoma-based BOK Financial Corp. both said in November they had plenty of capital without government support.

Wells Fargo fell 70 cents, or 3.6 percent, to $18.53 on the New York Stock Exchange. The shares have tumbled 45 percent in the past year.

The canceling of corporate meetings is adding to the casino industry’s woes. Wynn Resorts, the biggest U.S. casino company by market value, said today that it will cut pay for all salaried employees in Las Vegas and reduce hours for others as the recession drives away consumers. Wynn shares have lost 75 percent of their value in the past year.

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net.

Last Updated: February 3, 2009 20:10 EST